WITH PRICES SO HIGH, ARE HOMES STILL AFFORDABLE?

Many of you have asked the question “should I wait to buy a home when the market isn’t so crazy?” My answer is always don’t wait! Yes, home prices will come down at some point, but what are interest rates going to do? We have seen some of the lowest interest rates in history and they are already starting to climb back up. Just a 2% rise in interest rates will have a huge impact on what kind of monthly payment you will have on your mortgage.

Check out this great little article and chart from our friends over at Keeping Current Matters.

Home values appreciated by almost 20% nationwide over the past year. Let that sink in a minute.

And with mortgage rates on the rise, many people are wondering: is it still affordable to buy a home?

The answer is: yes.

Let’s breakdown why:

  • Despite escalating prices, homes are still more affordable than they were at anytime leading up to the housing crisis
  • Rental prices are on the rise, making homeownership a more affordable option in many markets
  • Inventory is expected to rise, taking the edge off of the supply and demand issue that led to the price growth we saw over the last year

While the days of sub-3% mortgage rates may be fading away, buyers can remain confident in today’s affordability. However, be sure to tell them to not wait too long. As mortgage rates rise and home prices continue to appreciate, waiting to make a move will mean only one thing: it will cost more to buy a home.

So, when you are ready to buy or sell that home give Chris Simpson a call 231-215-7229. We can formulate a plan that will work best for your needs!

Chris Simpson
Nexes Realty Inc.
880 W. Broadway Ave
Muskegon, MI 49441

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