Housing Market Update
New Year! New Goals! New House!
We hope 2021 has found you all well and in good health! With January now here, spring is right around the corner. We know, we know, it doesn't feel like it, but it's coming and the housing market is about to heat up! This means that for anyone looking to make a move soon, the time has come to start the planning process and ensure you have a solid team in place to help you along the way.
If you’re anything like me, before making a big investment you like to better understand more about the in’s and out’s, and how it could impact your investment. That’s why we’ve connected with Allison Shaw to get a loan officers perspective on the current housing market and the steps to take to prepare for a move. Keep scrolling to read what helpful insight Allison had to share!
Market Talk with Allison Shaw | Novus Home Mortgage
We often hear “I’m going to wait till the market slows so I can get a deal!” If you’re shopping for a home today, you know it can be hard work. You might not find something right away and it’s easy to get fatigued.
Here’s the thing: while you can take some time off, the market is not taking time off! If the forecasted appreciation is 6% year-over-year, a home that would sell for $300,000 today could sell for $20,000 more in just 6 months. Additionally, if you were planning on putting the same percent down, you would have to borrow more because the home is now more expensive. The cherry on top is that 30-year fixed rates are ranging between 2.5%-3.125% currently. Bottom line is, home equity, for most Americans, is the quickest way to build household wealth.
Fun Fact
Home price appreciation across the US is currently up 7% year-over-year. It is forecasted to increase by 5-6% next year. Meanwhile, weekly earnings are up more than 5.9% versus a year ago. Additionally, only a portion of your income goes towards paying your mortgage. A 5.9% rise in income can offset a much greater percentage rise in housing expenses. This tells us that homes are actually more affordable, even though they have appreciated.
Pretty Interesting Right
While many people look solely at the ticket price of a home, information like Allison just shared can play a HUGE role in “buying power”. Understanding both your purchase price and interest rate, and how that impacts your monthly payments is very important. Small increases in interest rates can play a much bigger role than most think.
That’s why you hire the experts though! By partnering with trusted local experts your best interests come first and any questions you may have will get answered. We are just a phone call away.
Take care!
Jen
Investor // Landlord and DIYer // Realtor // Business Consultant // Globe Trotter // Converting Vegan.
