Oakland County Home Prices on the Rise BUT Housing Is Cheaper
When most Oakland County MI home buyers purchase a house they are buying under a certain house payment amount. Many factors go into that amount including home price, property taxes, mortgage interest rate. Your mortgage pre-approval is really an approval for a certain monthly payment- principle, interest, taxes and insurance or PITI. The purchase price in your pre-approval letter should be qualified with a cap on the interest rate and property taxes.
Example: Borrower is approved for a mortgage amount of $400,000 wih an interest rate not to exceed 3.7% and property taxes not to exceed $5,000.
This means you cannot mortgage $400,000 if the property taxes are $7500 or the interest rate goes up to 4.5%. Conversly, you can mortgage over $400,000 if the property taxes are $2000 and/or the interest rate is 3.2%. The goal is to keep the house payment under a certain $$ amount.
Though home prices in Oakland County have been on the rise, property taxes have been on the decline, and mortgage interest rates are still low.
Another example: I had an Oakland County home listing in 2007 for $400,000. At that time the property taxes were $6203/year and the average interest rate in 2007 was 6.34%. The average intersest rate in 2012 was a mere 3.66% with the months of November and December boasting interest rates of 3.35%. Property taxes for that house were only $4429 or $148 less per month than in 2007. You would need to pay $600,000 today for that same Oakland County house to have the same payment as the buyer in 2007. Another way to look at it is the seller would have had to come down to $295,000 for the buyer to have the same payment as he would if he bought for $400,000 today.
Or $295K sale price in 2007 = $400K sale price in today
Or $600K sale price today = $400K sale price in 2007
2013 will be a good year to purchase your Oakland County Michigan home. Prices are on the rise, but still quite low, and take advantage of the low property taxes and super low mortgage interest rates.
Jackie Hawley, Realtor
ReMax Encore, Clarkston
My direct line at the office is 1-800-401-1444.
My cell number is 248-736-6407.
And my email address is Jackie@JackieHawley.com
Homes for Sale in Oakland County MI
Homes for Sale in Clarkston MI
Homes for Sale in Lake Orion MI
Homes for Sale in Oxford MI
Homes for Sale in Waterford MI
Homes for Sale in Lapeer MI
www.ClarkstonMichiganRealEstate.com
www.OaklandCountyMichiganLakes.com
www.LakeOrionLakeFrontRealEstate.com
Preparing Your Home for Sale
Why List With Me
Marketing Your Home
Comments(1)