When most of us begin searching for a home, we naturally start by looking at the price. It’s important, however, to closely consider what else impacts the purchase. It’s not just the price of the house that matters, but the overall cost in the long run. Today, that’s largely impacted by low mortgage rates. Low rates are actually making homes more affordable now than at any time since 2016, and here’s why.
Today’s low rates are off-setting rising home prices because it’s less expensive to borrow money. In essence, purchasing a home while mortgage rates are this low may save you significantly over the life of your home loan.
Taking a look at the graph below with data sourced from the National Association of Realtors (NAR), the higher the bars rise, the more affordable homes are. The orange bars represent the period of time when homes were most affordable, but that’s also reflective of when the housing bubble burst. At that time, distressed properties, like foreclosures and short sales, dominated the market. That’s a drastically different environment than what we have in the housing market now.
The green bar represents today’s market. It shows that homes truly are more affordable than they have been in years, and much more so than they were in the normal market that led up to the housing crash. Low mortgage rates are a big differentiator driving this affordability.
What are the experts saying about affordability?
Experts agree that this unique moment in time is making homes incredibly affordable for buyers.
“Although housing prices have consistently moved higher, when the favorable mortgage rates are factored in, an overall home purchase was more affordable in 2020’s second quarter compared to one year ago.”
“No matter what you’re looking for, this is a great time to buy since the current low interest rates can stretch your spending power.”
“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”
“Homeowners are the clear winners. Low mortgage rates mean the cost of owning is at historically low levels and who gains all the benefits of strong house price appreciation? Homeowners.”
When purchasing a home, it’s important to think about the overall cost, not just the price of the house. Homes on your wish list may be more affordable today than you think. Let’s connect to discuss how affordability plays a role in our local market, and your long-term homeownership goals.
It’s Not Just About the Price of the Home
Source: Simplifying the Market
One of the biggest surprises of 2020 is the resilience of the residential real estate market. [Read more…]
As the days grow shorter and we creep toward autumn, parents eagerly look forward to the time-honored tradition of sending their kids back to school. With kids finally out of the house and accounted for, maybe there’s even a little bit more time to linger over that last cup of coffee in the morning. Unless you’re in the midst of a global pandemic. In which case the longest commute your child will most likely have this fall is downstairs to the breakfast table. Yes, parents, students, and educators find themselves in the midst of remote learning once again. It’s Zoom calls galore, at-home work sheets, projects and three-square meals a day all in the confines of your home. So, in an effort to mitigate some of the stress this scenario will undoubtedly bring, we’ve put together a list of things to make your house more conducive to at-home learning.
Before even determining the space you or your kids will use, make sure everyone has a clear idea of their daily schedules and routines. Everyone should get up and get ready as if they were leaving the house and know what each hour will bring. Something as inexpensive as a dry erase wall calendar from Target can do the trick. Additionally, desk organizers or files can go a long way in keeping students motivated and on task.
Create Usable Space
Your pre-pandemic home improvement punch list probably looked a bit different than it does today. Perhaps you dreamt of a bathroom rehab or kitchen facelift. But with everyone tripping over each other, functional space is at a premium. Fixing up lower levels, spare bedrooms and sunrooms has become essential. And while rehabbing an unfinished attic or basement might be a little more costly and time consuming, it can ultimately provide more sharable space while adding long-term resale value to your home. If you’re not up for a major overhaul, small enhancements can do the trick. Bookshelves can offer more space for storage while also dividing up a room. Wayfair offers several affordable options.
Let There Be Light!
Are you adequately using the natural light in your home for yourself and your newly minted e-scholars? Are bedroom desks placed near windows? Are shades lifted during daylight hours? Maybe you have some heavy drapes that are blocking natural rays and confining space. Smith and Noble can offer a quick fix for custom window treatments, allowing you to spruce up your space while getting a little more vitamin D as the days grow shorter and kids are outside less.
Call The Help Desk
The one thing you’ll be most dependent on in your new role as proctor is, without a doubt, technology. Make sure your router is up to date and you’re getting the best service and deal from your internet provider. There are a bevy of plans and packages, so do your research. If you have internet dead spots in your home, look into internet boosters that plug in to electrical outlets and improve signal strength. Also consider noise cancelling headphones for Zoom calls or to block out ambient noise (Might we suggest getting yourself a pair as well?).
This may seem basic, but you’ll probably find the need to stock your fridge and pantry a little more generously than you would during a ‘normal’ school year. Keep healthy snacks that are easy to reach at eye level – string cheese, yogurt, individually packaged Goldfish. A lovely bowl of fresh fruit is a welcome addition to any kitchen countertop and allows kids to easily choose a healthy pick-me-up.
Although the 2020-2021 school year is shaping up to be rather unconventional, the kids are alright. Patience and humor can go a long way to maintaining your sanity. And once those classroom doors do open back up and your schoolhouse is vacated, pour that extra cup of coffee, put on the noise cancelling headphones, close those window treatments and dance like no one is watching. Because finally, they won’t be.
Inventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for homes to purchase than there are sellers selling them, so the scale is tipped in favor of the sellers. [Read more…]
When shelter-in-place orders brought the economy to a screeching halt earlier this year, many believed the residential housing market would follow suit. Countless analysts predicted buyer demand would disappear and home values would depreciate for the first time in almost a decade. That, however, didn’t happen. It appears the opposite is taking place. [Read more…]
Today, Americans are moving for a variety of different reasons. The current health crisis has truly re-shaped our lifestyles and our needs. Spending extra time where we currently live is enabling many families to re-evaluate what homeownership means and what they find most important in a home. [Read more…]