1. Why did you want to buy a home before?
I will delve into the financial aspect later on. But before we even get to that; why did you want a new home?
I can't answer why you particularly wanted to buy a home, but a study by the Joint Center for Housing Studies at Harvard University stated the 4 Main Reasons People Buy a Home as:
1. A good place to raise children and for them to get a good education.
2. A place where you and your family feel safe
3. More space for you and your family
4. Control of that space.
Are any of these reasons still true for you? If so you should continue house hunting.
We find people move to Ponte Vedra Beach to find a more suburban, pristine environment on the beach. If you like the country club life or planned communities then you won't find a better location in Northeast Florida.
We find people move to Nocatee to take advantage of the amazing prices for new homes in the St. Johns County school system plus being close to the beach. And don't forget the amenities and social activities can't be beat anywhere else in Northeast Florida.
2. What will the effect on Nocatee and Ponte Vedra Beach home prices if I wait?
This one is pretty to easy to answer. Home prices are expected to go up by 5.3% over the next year per the Hope Price Index from CoreLogic.
So on a $300,000 Nocatee home will cost you $315,900 next year. Or in Ponte Vedra Beach a $800,000 home will cost you $842,400 next year. Evidence of rising prices in both areas can be seen if you look up prices from just last year. If you are buying a home you don't want to slap yourself thinking "I should of bought a home last year".
3. What will the effect on mortgage interest rates if I wait a year?
The cost of a home is two fold. One you have the purchase price which you effect your down payment and mortgage amount. Two you have the mortgage amount which is effected by the mortgage interest rates.
And let me tell you; Fannie Mae, Freddie Mac, National Association of Realtors and The Mortgage Bankers Association (MBA) all project interest rates to go up. By third quarter of 2017 the average projected interest rate is 3.93%.
So your mortgage payment is going to be more if you wait.
So what should you do?
First consider what a new home means to you. If you still have sufficient reasons to look for a new home then move full speed ahead; because homes will be at a higher price and higher interest rate next year. In fact, it has been rated one of the best investments for the next 10 years!