What to Know When Buying This Spring
May 4, 2018
Spring means warmer air and also the start to real estate season. So, if you are thinking about jumping into the home buying market, you might need to understand a few things about this time of year first. Here’s the run-down from the real estate experts at Trulia.
Starter Home Prices Are Going Up
Out of all the home-types, starter homes are seeing the largest price increases. If you’re looking for a starter home, just know – there’s a lot of demand, which is driving up the prices by 9.6 percent vs. this time last year. If you are going the starter home route, consider older or smaller options – there are 8.3 percent more fixer upper-type homes than there were six years ago. So, if you’re handy or willing to put in some sweat-equity – you may be in luck!
Houses Are Still Affordable
Even though home prices are on the rise, take heart! Homes are still more affordable today than they were in past decades. With mortgage rates at a historically low point, you’re still saving thousands more than you were years ago, when interest rates were at 16 percent.
Here’s the math:
1980 – interest rate was 16 percent, so your payment on a $200,000 loan would be — $2,690/month
Today – interest rates are around 4.5 percent, so your payment on a $200,00 loan would be — $1, 013/month
That’s more than double! So, keep in mind – even though prices are rising year-over-year, buying a house is still way more affordable than it was 30 years ago.
Neighborhood Matters
It’s important to do your research before you buy in a certain neighborhood to see what the rate of homeownership is in that area. Trulia is seeing a drop in homeownership in some neighborhoods, which can really put a damper on re-sale. Most people like buying a home in an area with higher homeownership rates. And, the one factor that increases home ownership rates are an increase in household income. Trulia actually allows you to pinpoint median income via their demographics data.
Once you find the home of your dreams, be sure to contact Beltmann so we can help make your move a reality.
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