Buying a Columbia SC Home: Waiting Could Cost You

The costs of delaying or forgoing buying a Columbia SC 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 Columbia SC home.

The report used data on current median existing home prices, rents, local Columbia SC 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.

When buying a Columbia SC home there are many things you have to consider

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 Columbia SC Home: The Cost of Waiting

The estimated wealth an average home buyer would accrue over a 30-year period when buying a Columbia SC 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 Columbia SC home see sizable financial benefits compared to lifetime renters.

This analysis looked solely at the financial reasons for buying a Columbia SC home, based on assumptions about rising mortgage rates and changes in home values. It's important to remember that the decision for buying a Columbia SC 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 Columbia SC home in our section on Columbia SC Home Buying Tips to your right under Columbia SC Real Estate Categories.

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