If, for example, you’re getting ready to buy a home and know your budget allows for a monthly payment of $1200-1250 (marked in gray on the table above), every time the mortgage rate increases, the loan amount has to decrease to keep your monthly cost in range. This means you may have to look for lower-priced homes as mortgage rates go up if you want to be able to maintain your budget. ...
Kevin Budde of Monarch Coast Financial shares his recent "Real Estate Talking Points" where he gives weekly market updates on the latest real estate headline news.
This week Kevin's key points are:
- Today’s home price appreciation is driving equity higher throughout the country.
- If your needs are changing and you’re ready for a new home, your equity may be a great asset to power your next move.
- Now is a great time to put your equity toward a down payment on the home of your dreams.
With so few homes available to buy today, houses are in high demand, and they’re selling fast.
That means it’s a great time to sell if you’re ready to make a move.
Reach out to a local real estate professional to make sure your house is ready for a top-dollar sale this spring. It may be closer than you think!
. When you’re thinking about buying a home, there are a few key steps to take before you even start to look at houses.
. From saving for your down payment to getting pre-approved for a mortgage, you’ll want to make sure you keep your financial plan on track from the beginning.
. Reach out to me so I can put you in touch with my trusted lender today to make sure you have the best possible guidance as you begin your homebuying process.
- Homeownership provides comfort, stability, and security, and it makes you feel more connected to your community.
- Your home is something to be proud of and is uniquely yours, so you can customize it to your heart’s desire.
- If you’re ready to fall in love with a home of your own, please contact me to get you started on the path to homeownership.
Every year, households across the country make the decision to rent for another year or take the leap into homeownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent in most of the country.
There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home.
“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”...
Zillow predicts 21% increase in home sales, the most recorded since 2005
Zillow’s 2021 housing forecast echoes the projections of other industry experts for an acceleration of home sales and home value appreciation, with numbers anticipated to be even higher than in 2020.
According to Zillow’s Home Value Index, the company expects seasonally adjusted home values to increase by 3.7% from December 2020 to March 2021, and by 10.5% through December 2021. It also predicts home value appreciation to peak in June 2021 at 13.5%.
In fact, the company has already upped its December 2020 forecast: Zillow initially expected a 10.3% increase in home values through November 2021.
Approximately 5.6 million existing homes were sold in 2020, a 5.3% increase from 2019, according to officials. Zillow predicts 6.82 million existing home sales in 2021, the most recorded in a single calendar year since 2005 and a 21.1% increase from 2020.
Quarterly Zillow Home Value Index...
We are seeing record-low inventories and overpowering demand across Southern California counties to start the year. As a result, it is already a blazing Hot Seller's Market in January. The market has not been this hot since 2013. The imbalance of supply and demand in the market right now are causing appropriately priced homes to fly off the shelves. Sellers will continue to call the shots through the winter months and into the spring. For any buyer thinking of waiting to purchase, this is an ill-advised decision. Now is the time to take advantage of these record-low rates!
- Sometimes it helps to see the dollars and cents you’ll save when you purchase a home while mortgage rates are low.
- Today’s low rates mean it’s less expensive to borrow money, so the savings over the life of your loan is significant.
- Reach out to a real estate professional to determine the best way to position your family for a financially-savvy move in today’s market.