Housing Remains Strong- Values Should Climb for years

By
Mortgage and Lending with CMG Home Loans NMLS 248937

 

For all that are waiting for Home Prices to drop before you buy, it is not likely to happen.

If you are waiting for Rates to Drop before you buy-  You will pay significantly more when interest rates drop. Housing prices are at all time highs, nationally prices are increasing at about 0.6%/month  Put that into perspective a $500,000 home today will be worth $518,000 in 6 months or $535,000 in a year. Here are the numbers for 2023 for all the major housing prognosticators (averaged out the pace is 7.4% for 2023 or 0.617%/month)

Our housing market is seriously under supplied and the population is growing at about 1.2million people per year.

The last time we saw inventory this low was in the 1970s when the population was about 203,211,000 people as of the 2020 census we were at 331,449,000people

Combining the existing homes available for sale with population on a graph we can clearly see why prices have been climbing- It is a supply and demand issue.

To be fair, I am sure there are a few markets that are over sold and may not be climbing as fast as the rest of the country.. I think the NJ market is a close match to the National numbers and in some cases may even be out pacing it.

Just remember housing over time is a solid investment- here's some numbers to chew on for every year there is data:

Do you need a better reason to buy NOW?  

 

TLDR: There are not enough homes available for the number of people that want to buy in the United States. Housing prices will continue to climb. If you can afford to buy now, do not wait, you will gain equity with every payment as the value climbs. You can refinance the mortgage when rates drop. If rates drop to 5.5% next year you would save almost $400/month on a $400k Mortgage. (your land lord will not drop your rent when they refinance)

 

 

Give me a call.

Robert Rauf 
Mortgage Loan Originator NMLS# 248937
http://www.RobertRauf.com
or my blog: http://activerain.com/blogs/rrauf 
Office: (732)908-4868  Cell (732)740-0175 

RRauf@CMGhomeloans.com 
www.RobertRauf.com
 
 

Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans  is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit  www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

Comments (4)

Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Renters feel they can't afford a home, yet they pay rents that may well be higher than their own mortgage and have no tax benefits.

Aug 08, 2023 10:00 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Ed (Edward) Silva, 203-206-0754  - so many "think" or "know" rates will go down, prices will drop- with out any clue what the actual data says  Rates will drop, but prices will continue to climb. and as per my example above- you'll never make up that extra 39k in equity on a 500k home in a year because rates came down a little... 

Aug 08, 2023 10:05 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Great points made. Thanks for sharing and enjoy your week!

Bill Salvatore, Realtor- Arizona Elite Properties

Aug 08, 2023 11:29 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Bill Salvatore - East Valley You are welcome!  I hope there was a little bit of information there to help educate your clients with.

Aug 09, 2023 09:29 AM