Looking forward to 2021? I am. While 2020 has been extremely challenging, real estate has made it possible for people to buy homes with unbelievably low interest rates. So, is buying a home today a good move? YES!
The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.
Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100: Compared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.
But isn’t the economy still in a recession?
Yes, it is. That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said: “Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”
Our challenge now as realtors is to convince homeowners who are hesitating to put their homes on the market to take the leap to take advantage of the financial gains of selling during a time when inventory homes on the market in low. Why, because as sellers they gain to net more money from the sale of their home, sell quickly, and then move on to buy a new place at record low interest rates. So don't hesitate, if you or someone you know is thinking of selling their home, contact me today, and let's take a look at your local market, discuss my top marketing strategies on how to get your home sold quickly and net you the most money.
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