The #1 Misconception in the Homebuying Process

By
Real Estate Agent with REMAX Realty Group Lic. # SL3154233

After over a year of moderating home prices, it appears home value appreciation is about to reaccelerate. Skylar Olsen, Director of Economic Research at Zillow, explained in a recent article:

 “A year ago, a combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise. That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains. As a natural reaction, the recent slowdown in home values looks like it’s set to reverse back.”

CoreLogic, in their January 2020 Market Pulse Report, agrees with Olsen, projecting home value appreciation in all fifty states this year. Here’s the breakdown:

  • 21 states appreciating 5% or more
  • 26 states appreciating between 3-5%
  • Only 3 states appreciating less than 3%

home buying process in cape coral fl

The Misconception

Many believe when real estate values are increasing, owning a home becomes less affordable. That misconception is not necessarily true.

In most cases, homes are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by almost a full percentage point since this time last year.

Another major piece of the equation is a buyer’s income. The median family income has risen by 5% over the last year, contributing to the affordability factor.

Black Knight, in their latest Mortgage Monitor, addressed this exact issue:

 “Despite the average home price increasing by nearly $13,000 from just over a year ago, the monthly mortgage payment required to buy that same home has actually dropped by 10% over that same span due to falling interest rates…

Put another way, prospective homebuyers can now purchase a $48K more expensive home than a year ago while still paying the same in principal and interest, a 16% increase in buying power.”

 

information provided by KCM

Bottom Line

If you’re thinking about purchasing a home, don't wait any longer and take advantage of the low interest rates. Call your local Realtor: Abby Stiller with REMAX Realty Group! who can help you with the buying process. 

Posted by

 

Abby Stiller 

Realtor® Lic. #3154233    

12 Years of Experience

RE/MAX Realty Group    Cape Coral Fort Myers Naples  Realtor Cape Coral      

 

I help Home buyers find their dream home & Homeowners sell for more. Thinking of buying or selling? Call/Text me: 239-284-8637   Your Honest & Dedicated Realtor!

or visit: www.TeamStiller.com

 

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Topic:
Home Buying
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Florida Lee County Fort Myers
Tags:
zillow
first time home buyer
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Rainmaker
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Thomas Santore Lic Associate Real Estate Broker
Coldwell Banker Realty/Coldwell Banker Commercial NRT - Yorktown Heights, NY
Realtor®-ABR-Land, Residential & Commercial Sa

Great Information!

Keep it coming

Tom S.

Feb 24, 2020 08:03 AM #1
Rainmaker
541,039
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Thank you for the follow and your comment Thomas Santore Lic Associate Real Estate Broker Have a great week!

Feb 24, 2020 08:07 AM #2
Rainmaker
4,317,644
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Abby, great information, and CO is one of the states enjoying over 5%, last month was 6%, and think this month it increased again.

Feb 24, 2020 08:21 AM #3
Rainmaker
2,883,211
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

That is interesting stuff.  I like your new profile picture and I hope you are having a great day!

Feb 24, 2020 08:48 AM #4
Rainmaker
3,406,682
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Abby, great information to pass on here in the Rain and to people in your area.

 

Feb 24, 2020 09:21 AM #5
Rainmaker
541,039
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Glad to hear that Joan Cox 

Feb 24, 2020 04:27 PM #6
Rainmaker
541,039
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Hey my friend Brian England Thanks so much!

Feb 24, 2020 04:36 PM #7
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Abby Stiller

Professional Bilingual Realtor (239) 284-8637
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