Financial Considerations for the Move-Up Buyers

Let's look at a scenario for Move-Up Buyers.  If we take a look at the 2006 price right here on the table - back in 2006, their house was worth 300,000.  They were thinking about moving to that house down the block - that really beautiful house with the built-in pool with the extra accrage.  But that house was $450,000 and they couldn't afford to buy it back in 2006.

They bought the $300,000 house instead.  Well now both of those house have dropped 20 percent. As the chart shows while their house dropped $60,000, the other dropped $90,000.  

So making your move now to the home of your dreams, you saved $30,000 by buying the house now and not in the crazyiness of 2006. Buyers know that prices have bottomed out, this is the time to move up.

Remember the recent Home Price Expectation Survey, 105 of the leading housing analysts call for a 3.1 percent increase in home values by the end of 2013.