Are you thinking of buying or selling a home or investment property? If so, you might wonder if now is a good time to make such a big decision. The answer is yes, and here are some reasons why:
· First of all, the housing market in the United States is still strong, despite the challenges posed by the pandemic and inflation. Home prices nationwide were up 2.0% year-over-year in September 2023, while the number of homes for sale fell 15.8%. This means that demand continues to exceed supply, making it a seller’s market. However, this also means fewer homes to choose from, so if you find one that meets your needs and budget, you should act fast before someone else snatches it.
· Secondly, interest rates are actually historically low, even though they have risen in the past year and a half. The Federal Reserve has lifted its key federal funds rate 11 times since March 2022, bringing it to a target range of 5.25-5.5 percent. This is the highest since early 2001, but it is still much lower than the rates in the 1980s, when they reached as high as 20 percent. The fed funds rate influences other consumer borrowing costs, such as mortgages and credit cards. The average rate on a 30-year fixed-rate mortgage was 7.63% in the third week of October 20233, which is higher than the near-zero rates in March 2022, but still lower than the historical average of around 8 percent.
To illustrate how interest rates affect your monthly payments, let’s look at an example. Suppose you want to buy a home that costs $250,000 and you have a 20% down payment ($50,000). If you get a 30-year fixed-rate mortgage at 7.63%, your monthly payment would be $1,396. If you had gotten the same mortgage at 20%, your monthly payment would be $3,028. That’s more than double! As you can see, interest rates make a huge difference in how much you pay for your home over time.
Therefore, if you are ready to buy or sell a home, now is a good time to do so. You can take advantage of the historically low interest and lock in a favorable mortgage rate. You can also benefit from the strong housing market and build equity in your home or cash it out if you are ready to sell as prices appreciate. Of course, buying or selling a home is a personal decision that depends on many factors, such as your income, savings, credit score, lifestyle preferences, and future plans. That’s why you need a professional real estate agent who can guide you through the process and help you get the best deal.
If you are looking for an experienced and trustworthy real estate agent, look no further than Michelle Allen Realty. I have been helping buyers and sellers in this area for over 10 years and know the local market inside out. I can help you find your dream home, negotiate the best price and terms, handle all the paperwork and inspections, and close the deal smoothly and efficiently. I can also provide valuable advice and resources on financing options, home improvement tips, neighborhood information, and more.
Don’t wait any longer. Contact us today, and we will help you make your homeownership dreams come true. Call me at 706-491-6779.