The affordability of homes is lower today than it has been in years...and to top it off, mortgages hit a historic low in 2010 and continue to remain at relatively low levels. Take a look at this chart to help put things in perspective:
The cost of a loaf of bread and a gallon of gas has more than tripled since 1989 and car prices have nearly doubled. While the median price of a new home has increased by 70%, mortgage interest rates, which stood at 10% back in 1989, are now less than half of what they were back then. The impact of today's super low interest rates is that the monthly mortgage payment on a median priced home in the US has increased by only $4 since 1989.
Unless a buyer is paying cash, the monthly payment tends to be a far more relevant number than the home's actual purchase price. So for buyers waiting for home prices to hit the floor, pay attention...the possibility of a slight drop in the price of a home will have very little impact on your monthly payment, while even a slight rise in interest rates (a more likely scenario) will have a huge impact on your finances.
Timing the market is never possible and in today's market, staying on the sidelines is more likely to result in a missed opportunity than a small savings. Buy now so you can look back and say, "I'm glad I did" rather than "I wish I had."
If you're looking to buy or are ready to put your home on the market, email, text, or give us a call. As a resident of nearby Grey Oaks, Pickett Property Group is your Western Shawnee expert.
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