The costs of delaying or forgoing buying a Vero Beach home in today's market have become very high. This projection is according to the inaugural Opportunity Cost Report released by Realtor.com. With interest rates and home prices expected to rise within the next year, consumers could end up costing themselves more by putting off buying a Vero Beach home.
The report used data on current median existing home prices, rents, local Vero Beach mortgage rates, and estimates of property tax, and insurance rates. It also factored in maintenance costs, costs of selling, forecasts for mortgage rates, home prices, and rents over a 30-year time period.
Current market conditions give buyers the opportunity to build substantial wealth in the long-term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation. The problem is, and has been for some time, inventory is low, which has many would-be home buyers – especially first timers – standing on the sidelines and missing out on potentially material financial gains.
Buying a Vero Beach Home: The Cost of Waiting
The estimated wealth an average home buyer would accrue over a 30-year period when buying a Vero Beach home totals $217,726. The report noted the penalty of waiting one year to buy is $18,672, while the penalty of waiting three years to buy is $54,879. Data shows that those buying a Vero Beach home see sizable financial benefits compared to lifetime renters.
This analysis looked solely at the financial reasons for buying a Vero Beach home, based on assumptions about rising mortgage rates and changes in home values. It's important to remember that the decision for buying a Vero Beach home is deeply personal. Potential buyers need to consider factors such as upcoming life events, job security, and potential relocation, in addition to financial benefits, because they too can have a significant impact on ownership.
Get more information as it pertains to buying a Vero Beach home in our section on Vero Beach Home Buying Tips to your right under Vero Beach Real Estate Categories.
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