Here’s how increased prices are practically offset by reduced rates.
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These days, our real estate market is seeing an increase in prices but also a reduction in interest rates, so how does this affect buyers? Prices have risen almost 10% compared to this time last year, however, a half-point drop in interest rate equals about 17% savings!
If you bought a home last year at $200,000, your principal and interest payment would have been $843.21 with a 3% interest rate. If you bought that same house now with the 10% increase in price at $220,000 and the decreased interest rate of 2.5%, your monthly payment would be $869—that’s less than a $30 increase. All this means it’s still a wonderful time to buy and take advantage of these low interest rates. We’ll likely never see rates this low in the real estate industry again.
If you need more information about buying or selling or have any questions, give us a call. Our team is on standby seven days a week to help you. If you’d like an estimate of what your home is worth, check out our home valuation tool on our website, or call us if you want a more accurate valuation of what your house could be worth in the current market. We look forward to speaking with you.