What a difference 10 years makes

 

Did you know this? Shocking!

 

Market Update:

 Between April 1971 and April 2024, 30-year fixed-rate mortgages averaged 7.74%. 

As you can see, Mortgage Interest rates are still historically Low at about 7%.

Key Points:

Home Inventory is down, demand is still good = Home prices rise.

Once Home inventory rises, there will be more for Buyers to choose from. Prices, then, usually start to fall.

If inflation causes interest rates to rise, then more buyers will not qualify for a loan.

This will decrease demand and home prices may fall.

When is:

The Best time to Buy a Home:  When you are Ready both Financially and Mentally.                                                                                        

The Best time to Sell a Home:  When you need to Sell or when you want another type of Home.

We would be glad to discuss this with you anytime.

Buy the Most Expensive House we Can?

 Question: We are in our mid 20’s and have been married for a few months. We are ready to purchase a home. Someone advised us that we should purchase a home for near the maximum amount of our preapproval which is $325,000.  What do you suggest?

Answer:  You did not mention who gave you that advice, but we do not know of any reputable Real estate or Mortgage professional who would tell you that! When considering a home purchase, your Family budget must take first priority. Although your home is very important, there is more to life than a home. How about being able to purchase the right things for your family?  How about having a little cash extra to enjoy life? How about the necessity of having savings for an emergency or to reward yourself once in a while for all your hard work?  Money problems are very stressful.

You were approved for that amount based on your income and debts. Sounds like you are in a pretty good financial position. Why mess that up? Remember that there is a fine line between need and desire.

You need to sit down with your spouse and make a family budget. Decide which home mortgage payment fits that budget. Get advice from your parents and a financial adviser. Don’t take advice from anyone unless they are qualified to make those financial  suggestions. Ask your lender what price home fits that monthly payment. Then look at homes in that price range. Keep in mind that a house payment includes homeowners insurance, a tax bill, utilities and possible mortgage insurance.  If you do not like the homes you see in that price range, then do what your parents and grandparents did…. Save more money!

I have a Gold Mine in my home

 Question: I’ve had my home for sale now for almost a year. I don’t know why my home is not selling. I have a newer furnace & central air. My agent says it is too high in price. I know my house is worth what I’m asking.  Any suggestions?

Answer:   The real truth is "Location, condition, and price." And price trumps every other factor.
Location affects the value of a home, but it’s price that sells a home.
Oceanfront, mountainside, or penthouse, the most desirable location in the world won't sell at the wrong price.
A good location will sell at a fair price. A bad location will sell at a fair price, too. It just won't be as a high as it would be for a good location.
A home in good condition will sell for a fair price. A home in poor condition will also sell at a fair price. Again, it won't be as high as a comparable home in better condition.
But neither location or condition will sell any house. Only one thing does that - price.

So if you're a seller waiting for that "special buyer" who will appreciate your 1970’s décor and flowery wallpaper, and is willing to pay you top dollar for your home because of your real estate prowess, you're going to have a long wait.
Maybe you didn't listen to your agent when he said you are pricing your home above the market. Maybe you got mad at the first few buyers who looked at your home and didn't make offers.
When the showings stopped completely, maybe you accused your agent of not doing a good enough job.
You put the blame on everyone except where it belongs - on you. It's not about you, what you want, or how much you need for your retirement.  It's about the price.

This is Terrible!

 

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The Right Time to Purchase a Home is Always When you are ready!

The Number 1 regret we hear from buyers is: "I should have bought sooner!"

Here's what can happen if you wait for Rates to drop:

                                         

Buy Now: Home Price: $600,000. 7% Interest. Payment: $3,992.

Buy Later: Home Price: $745,000. 5% Interest. Payment: $3,999.

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Are you losing money on your Savings?

For Example: Chase savings interest is .01%

Capitol one is 4.35%       UFB Direct is 5.25%    All FDIC Insured.  

$25,000 x .01% is $2.50 a year.

$25,000 x 4.35% is $1087.50 a year.

$25,000 x 5.25% is $1312.00 a year

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Here is a nice solution for kids still Living at home:

Instead of kicking them out of the house at 18, charge them $500 a month rent until they are 24 years old. 

When they turn 24, give them the money back to use as a down payment on their home purchase.

They'll have saved $36,000 !   Be sure to have them Call Us!  😀

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Think Interest rates are high?

Here is a History of rates 1980-2023:

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       Thank you for Reading our Newsletter.

We know you are flooded with E-mails every day, so we try to only send out a couple E-mails a year to keep you informed of the Real estate market and your Home Investment.

Check out our blog from time to time at Higginshousechat.blogspot.com

and website at Cathyhiggins.com

Cathy Higgins    Jim Higgins    Jennifer Fuller

                       McColly Real Estate