The stars have aligned. Interest Rates are low and the average sales price of starter homes is rising faster than the rest of the market.The real opportunity in the today’s real estate market is for the individual or family that is looking to move from their starter home to their dream home.
The person sitting in the starter has a house that is a hot commodity that has increased in value by 7.26 while their dream house is increasing in value at much slower rate. You couple that with the current interest rate of 3.44% and that is where the magic happens.
Even though the price of a 4-bedroom detached home has increased by almost 1%, it is actually 4.69% less expensive than it was in August of 2015. How, you say, is that possible? Because, interest rates are the true driver of home affordability. The interest rate last August was 3.91% compared to today’s rate of 3.44%. That means last summer the principal and interest payment on $438,014 at 3. 91% was $2,068.48. Today, that same house costs $96.97 less per month.
Now is the time to act. Interest rates are not always going to beth is low. The standard house appreciation is in the 3-5% range. A 7%increase year over year is not sustainable for the long term and at some point will correct as it did in 2008 and 2009.
So, whether you have outgrown your current home or you want to move to another school district CLICK HERE to take the first step and get no-obligation price analysis of your current home.
Author:Alexander Necker Phone: 410-920-4760 Dated: September 17th 2016 Views: 172 About Alexander: ...
View our latest blog posts in your RSS reader. Click here to access.
About Alexander Necker, Real Estate Sales Consultant
I specialize in selling the Baltimore Metropolitan’s Premier Homes.
I am an Eagle Scout. I mention this because the process of becoming an Eagle Scout provided me with the foundation by which I live my life. The values of trustworthiness, integrity, and helpfulness have allowed me to become the man I am today.
The words that describe me are:
Driver of my own professional destiny
Conduit for connecting people for professional development
Devoted husband with a wonderful wife
Father to 2 beautiful children with growing college funds
Student of Finance and Investments
After graduating college and starting a career in my field of study (agronomy), I quickly rose to the position of assistant and then superintendent of private golf courses. After 17 years in the golf business, I decided it was time to change to a career where I would not be at the mercy of the uncontrollable forces of sun, wind and rain. I chose a field where I would be the master of my fate, where the hard work and the long hours to which I am accustomed would be the determinant of my success.
The primary reason I am in the real estate business is to help people. A real estate transaction is one of the largest financial transactions you will ever undertake. Everyone deserves a real estate partner that understands and appreciates that fact. My focus on integrity, trust and communication are nothing less than I would want for myself, my family or friends entering into a large financial proceeding. I am committed to being the one real estate agent that keeps my client's best interests front and center.
In real estate, I consider myself to be a true professional in the same vein as the physician, the attorney and the accountant whom you must trust with the most important assets of your life. Nothing less is acceptable.
Alexander NeckerProudly PresentsA Glenangus Custom Home Located i
I appreciate all your assistance in selling my house. You made the process so easy and so quick.
When we first met and discussed the price, I had my mind made regarding the price. After you reviewed the current market with me, I took your advice and listed it for $20,000 less than I originally thought and I am glad we did. If we had listed at my price, we would still be trying to sell it. Instead, it was under contract in 14 days with three offers. Having multiple offers was a great feeling!!!
I also wanted to let you how impressed I was with your communication. I always knew what was going on with the inspections and the buyer. Our weekly and sometimes daily phone conversations really made me feel comfortable that there weren't going to be any problems with the settlement.