Click below to access the current report and chart.
TIME FLIES
Due to our extreme busyness which resulted in the flying of time, we have lumped the last two months reports into one. Yes, the market does seem to be improving. The number of homes sold and under contract have increased over the same months last year. This has, no doubt, been fueled by the very low interest rates. Last week they reported to be the lowest since 1951.
We all know that low rates are good but we don’t always realize what they mean to us. For example, the principal and interest payment on a $400,000 mortgage at 4 % would be $1910. That is probably lower than rent on this priced house in some parts of town. The most meaningful figure to me is that only $1333 of that first payment goes toward interest. That means that $577 of the very first payment goes to principal. After only 3 years, there will already be over $21,000 in equity. That should relieve the fears of many that they will be upside down in their houses. Even if prices never go up, they will have equity. Yippee!
As always, let us know how we can help you are someone you know with their real estate needs.
