What’s happening in our national real estate market, and how does it apply to you? Well, from my perspective, now may be a really good time to buy, and here’s why.
Great news! The percentage of income needed to buy a medium priced home is down to 15.7%, and the historic norm is 21.2%. So taking everything into consideration, including the price, mortgage rate, and wages, it’s more affordable to buy a home now than it has in the past.
This is great for sellers because it means that more buyers can afford to purchase your home. This is especially good at the holiday season, as we tend to see the housing market slow up a tad.
So let’s talk again about all this talk about the recession. Is a recession in our future? Well, yes, according to most of the real estate experts, advisors, and analysts across the nation, but I am going to keep reminding you that recession does not necessarily equal housing crisis. Here’s a graph of the last five recessions, and we saw prices increase in three out of the last five recessions. We need to be more concerned about all of the hype and the negative media that the news is trying to create.
Also, according to the Home Price Expectation Survey, which is made up of over 100 real estate experts, financial advisors, analysts, and economics, we are going to see appreciation, yes, over the next five years.
Take for example, a home priced at $250,000. You’ll see a $37,500 increase inequity in five years. So we are anticipated to still see equity even during the projected recession, but just not as much as we’ve seen in the previous years. Also remember, don’t wait to buy because you’re afraid of all the negative media, as rents are also increasing and anticipated to continue to go up.
So don’t listen to all the hype. Listen to the true facts. Reach out to one of us here at Homes by Krista and we’ll make sure that your best interests are served. And as always, make it a great home selling and buying day.