Beyond the Media-National Home Values

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The housing market still faces many challenges. High unemployment, foreclosures and other distress sales are keeping negative pressure on prices. This of course is good news if you are looking to buy as low rates and lower prices have brought affordability to record levels.

How Affordable? -Since 1963, it has cost an average of approximately 43% of ‘per capita' or individual income to finance the cost of a median priced home (20% down payment and prevailing 30 year fixed rate mortgage). Right now, it's only about half of that cost at approximately 22%.

Are you holding off on a purchase for fear that prices might fall further? - Chances are that some sellers might be thinking the same thing. If you're smart about it, you can use that as an advantage to strike the best possible deal on a home today for once sellers believe that prices have bottomed or are going back up, your advantage will be gone.

Rates are low today, who knows about tomorrow? - Gambling on the expectation of a lower price tomorrow at the risk of higher rates can cost much more in the long run than locking in a sure thing today. Ex. $200,000 30 Yr. fixed loan @ 5% = $1073/mo. today vs. $180,000 @ 7% = $1197 per month later.

Own, Rent or Borrow - One way or another, a home is something we all need every day. The numbers here tell the story and it's no secret that values have fallen, yet over time, that's not the case. As you can see by the chart, values over the last 10 years show very healthy appreciation. Can you say the same thing about stocks over the same period?

We don't get a history lesson in the news because the news is about the moment and the more dramatic the better. That's what sells advertising and that's how they get paid. For the rest of us, taking a rational, longer term view of things makes more sense. This is particularly true when it comes to a home, for this is something we are likely to own for many years rather than just moments.

Kate Cline
Senior Loan Originator
United Lending, LLC
2338 N. Loop 1604 W, Suite 290
San Antonio, TX  78248
210.408.6060 Office
210.918.6846 EFax
kate.cline@unitedlendingusa.com

Here is what they are saying about Kate Cline!!!

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8 Comments on Beyond the Media-National Home Values

APR
06
2011
1,481,005 Points 46 Featured Posts Outside Blog Called Shot Master

Thank you for the post. I hope prices will stabilize and buyers will buy.
6:01am • #1
563,230 Points 10 Featured Posts Outside Blog Called Shot Master

Great Chart, and I have been saying the same for a while.  Buyers really really need to take advantage of the double whammy low price, low interest rate situation.
6:08am • #2
563,261 Points 2 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Good Morning Link

Thanks for the post. Have a great day
6:10am • #3
108,809 Points

Nice information on home values, rates and payments. It's  a great time for investors to buy rentals.
6:15am • #4
102,608 Points Outside Blog

Thank you Gita.  Stay Strong.  Your attitude has more to do with making deals than the market.  My mother supported my brother/business partner and me by selling "non qualifying assumptions" back in the 80's when interest rates were 18%.  Get outside the box today and smile!  Check out the article below that I wrote about SATX.  Many people in our marketing are singing the blues too.  I firmly believe that the glass can be half full....or overflowing. Ours is pouring over! Choose to believe today.  May 2011 be your best year year yet!  No reserves!  No regrets!

http://kwcommercialsa.com/blog/?p=459

 
7:32am • #5
102,608 Points Outside Blog

Rene---Great attitude!  Below is a link to Kate Cline's Home Mortgage Page on KW Commercial SA's Expert Blog! Click on the RSS feed at the top of the page so that you can follow her.  She provides a wealth of knowledge related to the home mortgage business.  Have a great year!

http://kwcommercialsa.com/blog/?category_name=kate-clines-home-mortgage-page

 

 
7:35am • #6
102,608 Points Outside Blog

Thanks Patrick!  I pray you have a great day as well!
7:35am • #7
102,608 Points Outside Blog

Joe, I totally agree.  I love buying when everyone else thinks things are dead.  The problem with most US investors is that they wait til the top of the market to buy instead of making money when they buy low.  Its too late for Texas.  Our market is getting ready to Explode!  See below for a link to some of the great commercial real estate assets that I have for sale!  Let's make some deals baby! 

http://kwcommercialsa.com/blog/?category_name=links-commercial-real-estate-page

 
7:39am • #8


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Link LeGrand, CCIM, Director w/KW Commercial (Keller William Legacy) Rainmaker_large

Link LeGrand, CCIM, Director w/KW Commercial

San Antonio, TX

More about me…

Keller William Legacy

Address: 1102 E. Sonterra Blvd. Ste 106, San Antonio, TX, 78258

Office Phone: (210) 482-3200

Cell Phone: (210) 789-5465

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