Article In Its Entirety Credited to Keeping Current Matters
Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported:
“Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.”
Whenever there is a shortage in supply of an item that’s in high demand, the price of that item increases. That’s exactly what’s happening in the real estate market right now. CoreLogic’s latest Home Price Index reports that values have increased by 5.5% over the last year.
This is great news if you’re planning to sell your house; on the other hand, as either a first-time or repeat buyer, this may instead seem like troubling news. However, purchasers should realize that the price of a house is not as important as the cost. Let’s break it down.
There are several factors that influence the cost of a home. The two major ones are the price of the home and the interest rate at which a buyer can borrow the funds necessary to purchase the home.
Last week, Freddie Mac announced that the average interest rate for a 30-year fixed-rate mortgage was 2.87%. At this time last year, the rate was 3.73%. Let’s use an example to see how that difference impacts the true cost of a home.
Assume you purchased a home last year and took out a $250,000 mortgage. As mentioned above, home values have increased by 5.5% over the last year. To buy that same home this year, you would need to take out a mortgage of $263,750.
How will your monthly mortgage payment change based on today’s lower mortgage rate?
This table calculates the difference in your monthly payment:That’s a savings of $61 monthly, which adds up to $732 annually and $21,960 over the life of the loan.
Bottom Line
Even though home values have appreciated, it’s a great time to buy a home because mortgage rates are at historic lows.
Angela Barrett, "A Different Kind of Real Estate"
Angela Barrett is a local REALTOR® in Lexington, SC. Every day, she has the privilege of working with Buyers and Sellers around and on Lake Murray - Lexington, Gilbert, Chapin, and Irmo. It is her goal to help every buyer find the perfect home, and every seller sell at the best price possible. Exit Real Estate Consultants opened its doors in 2008 and has been the local expert since. Angela says, "she works with a wonderful group at EXIT and is proud to be a REALTOR® for a company that prides itself on being a "family helping families."
What makes Angela different from other Realtors is her desire to combine a love of real estate with the truth. She may not always tell you what you want to hear but will ALWAYS tell you what you need to hear. Before getting into the real estate industry, she owned her own court reporting business for 14 years. She decided to change careers because it was her desire to help others with their housing needs in a way that was honest and truthful, a way that put their needs ahead of the sale. Her business is built on Dedication, Communication, Determination & Trust while embodying the ability to cater and adapt to all of her client's Real Estate needs. She says the best part of her business is the people she meets and the ability to assist them throughout the process. Her goal is not only finding the hidden gem or selling at the right price but giving her clients peace of mind that they will work together through every detail.
Angela showcases her homes on her website and utilizes professional service providers to assist with her clients' buying and selling needs, including tips for staging and recommendations for painters, designers, handymen, and inspectors. She is communicative, thorough, and detail-oriented, and she'll be with you every step of the way!
Angela made Lexington home 28 years ago. She is knowledgeable about the area and feels blessed to call Lexington her home. Angela enjoys showing her clients around “Miss Murray”, the Jewel of South Carolina, and when she’s not helping someone with their real estate needs, she enjoys going to the gym, running, spending time on Lake Murray, and a little photography.
Looking to buy or sell a home in the Lake Murray area? Call Angela Barrett, who not only represents “A Different Kind of Real Estate" but also a different kind of REALTOR®.
View all posts by Angela Barrett, Realtor ExitREC
