Moving Up: Was it Really Worth Waiting a Year?

GW clock facesNew reports are revealing that the number of months’ inventory of existing homes available for sale is increasing. Some of these sellers are moving up, some are downsizing and others are making a lateral move.

There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.

Assume, last year, they had a home worth $300,000 and were looking at a home for $450,000 (putting 10% down they would get a mortgage of $405,000). By waiting, their house appreciated by approximately 10% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $330,000. But, the $450,000 home would now be worth $495,000 (requiring a mortgage of $420,000 assuming the original $45,000 down plus the additional $30,000 from the sale of their home).

Here is a table showing what the difference in monthly cost (principal and interest) would be if a purchaser had waited:

It costs you only 3 dollars and 27 cents per month less this year.  Was it really worth waiting a year to move up to the home of your dreams?  Only you can answer that question.


2012-logo-thumb1.jpgF. Hill Slowinski, JD, REALTOR®   (DC, MD, and VA)
W.C. & A.N. Miller Realtors, A Long & Foster Co.
Christie’s International Real Estate
Consultant, Sloans & Kenyon Luxury Real Estate
The Greater Bethesda-Chevy Chase Chamber of Commerce, Board Member
Charles County Chamber of Commerce, Member CCCC sm ogoBCC Chamber small.jpg
#9 Agent in Washington Metro region
Top producer – Sales, Listings, Rentals 2013
Long & Foster Chairman’s Club 2014

Direct: 301-320-8430 · Cell: 301-452-1409sklogo_home
Web Site:

OFFICE: 4701 Sangamore Road · Bethesda, Maryland  20816
Tel: 301-229-4000  ·  Fax: 301-229-4015