What’s more important - cost or price?

What’s more important - cost or price?

With so many moving pieces in the housing market these days, it may get confusing to know what is more important for buyers - cost or price? Are cost and price the same? Not necessarily. For an example, think in terms of buying a car. Most buyers can’t recall the actual "price" of the car they bought, what is more important is their cost - or the actual monthly payment. The same applies to real estate. For a buyer, it is not just the "price" of the home that can impact cost, the interest rate on the mortgage is also an important factor. So while the "price" of the home may fall, if mortgage interest rates increase then the actual "cost" of the home may vary, depending on the magnitude of the price decline and rate increase. Lots to consider here. If you are in the market to purchase a home - make sure you understand the difference cost and price and how that impacts your wallet. You may find that if you wait too long for prices to drop, your cost may actually increase with higher rates - and no one wants to increase their cost.