San Ramon Valley Real Estate and Homes For Sale
Carol Sawdey

San Ramon Valley Real Estate and Homes For Sale
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Was Waiting To Buy The Right Choice In 2014?

graphThere are lots of people out there who debated purchasing a home last year who ultimately did not.  There was a lot of talk about rising mortgage rates and home prices adding a sense of urgency to the decision but lets take a quick look to see if waiting was the right choice.

What Happened In 2014

Freddie Mac reports that the 30 year fixed rate was 4.53% on January 2, 2014.  As of December 31, 2014 they show it at 3.87%.

The Home Price index has home prices appreciating 4.8% during the same period.  So let’s do some quick math and see what the numbers turn out to be.

Assume a $500,000 home at the beginning of the year and with the 4.8% appreciation in price that makes it a $524,000 home at the end of the year.

Principal and Interest:
$500,000 @ 4.53% = $2542.35       $524,000 @ 3.87% = $2462.54

That’s a savings of $79.81 monthly or $957.72 a year by having waited, looking at just the monthly principal and interest payment.  However, you can’t forget about that additional $24,000 the home costs, as well as the additional down payment which for 20% down would be $4,800.  Staying in the home the U.S. average of 5 years, the savings is $4788.60.  Wow, that’s just about a wash.  A lucky wash in our opinion…

The Bottom Line

We don’t expect to see this kind of scenario in 2015.  Home prices are expected to rise an average of another 4%.  Interest rates are expected to rise by a full percentage point to near 5%.  Therefore, we recommend people in a position to be able to buy a home before these predictions become reality contact us to start the process.  We have the knowledge and expertise to go over the numbers with you and see if making a move makes sense for you.  No hassle, no obligation – we’re here to help!

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5SR Matt

“ When we started to seriously look for houses to meet our family's needs, we chose our neighborhood expert, Carol Sawdey. It was a perfect fit for us since we wanted to stay close to our current house/school. As a neighborhood resident, Carol knows the... (more)


I highly recommend Carol to anyone I know looking for a realtor! We put our home on the market at a time of year that wasn’t ideal, but we sold the house the first weekend and received over our asking price, which was for more than any equivalent house in... (more)


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