15 Nov Why this is a great time to buy
Just this last spring we had 3.25% interest rates and an abundance of buyers in the market. The quality homes I found where going to $50,000 over the asking price and in many cases no home inspection.
Now just half a year removed from that we have a different real estate market. We have 6.25% interest rates and fewer buyers and more homes on the market. So, instead of paying over asking price in might have seller paid closing costs or a sales price that is less than asking price.
Buyers are seeing the logic in buying at a cheaper price and if they want, they can do a no cost refinance when rates go back down. They have not overpaid for the house and have options to reduce their payment in the future.
What is the current difference between the spring and now for payment. We will use a home that lists $400,000. In the spring you could very well have paid $450,000 with no inspection. Now let’s say you paid $390,000. With 20 percent down you have a mortgage amount of $360,000 last spring and $312,000 now. In addition, now you can do a home inspection that gives you protection and peace of mind. If we use $200 a month for insurance and $360 a month for taxes the payments are as follows. For the spring your payment would be $2,334 and now is $2,687. The difference is $353 a month, but you can do a home inspection and your mortgage is $60,000 less.
I hope you found my blog on “Why this is a great time to buy” helpful. Look for more blogs on all aspects of Minnesota, real estate, and the world around us.
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The Anderson Team