I asked myself since the year 2000, twelve years ago, does it cost more to buy a home now in Yellowstone County. Several things influence the answer to that question, the absolute price of the home, the taxes and insurance, the interest rate, and inflation since that time and wages. I went back and took the median sales price of each year, assumed 100% financing at the Freddie mac rate for that year, and then used 30% of the payment to approximate the yearly taxes and insurance. Below are the graphic results and the main numbers.
Consumer price index 2000 172.2 2012 231.4 prices up 38.9%
Freddie mac interest rate 2000 8.05% 2012 3.6% interest down 55.2%
Estimated payment PITI 2000 $987 2012 $1150 payment up 16.5%
Median sales price 2000 $103,000 2012 $194,500 median price up 88.88%
Average wage Yellowstone county2000 $26,378 2012 $41,398 wages up 56.94%
pecentage of income to qualify 2000 66.81% 2012 89.99% up 34.69%
dow jones average 2000 $10,940 2012 $13,107 up 19.8%
Thought to ponder……. Would you be better off today if you had bought a home in 2000 and still lived there?
Comments (0)Subscribe to CommentsComment