As stated in Weichert Insights this morning,
Rates on 30-year mortgages continue to fall and are now at the lowest point in five decades, according to Freddie Mac. Coupled with attractive prices, these incredibly low rates make buying a home more affordable now than at almost any point in history.
This is fantastic news for homebuyers and sellers. Buyers can take advantage of high home affordability and save tens of thousands of dollars over the lifespan of a 30-year loan by locking in at these never-before-seen rates.
As a seller, you should make sure your real estate agent displays information about your home’s “affordability” to show potential buyers how low the monthly cost of ownership is at this point in time. This helps buyers see what buying your home really means to their bank account every month. I put up rate sheets with the price of the home in every open house and often get raised eyebrows from guests about how they never realized that they could afford a home that price…but that with rates so low, they can! I also leave them up in the home why a listing is on the market so that when agents bring in their clients, the client can really envision what buying this home actually looks like in the form of a monthly payment. Sellers…these rates increase your pool of buyers!
Sellers need to take advantage of the rates as low as they are…they will not stay this low for long…you can could never borrow money for as cheaply as you can now….this market is good for both sellers and buyers and that is not something that typically happens at the same time.
Ok…so I know what some of you are thinking, so I will address it:
I know that some sellers stand to lose money on their home regardless of the market being favorable due to when they purchased their home (in the peak of the market). In this case, it may not be the right time to sell if you do not have to….but if you purchased prior to that wild inflated time period, you may also be looking at selling and saying…”I have lost money because if I had sold in 2006 I would have made a lot more money”…FOLKS…while it is true that you would have “made more money” then, it is NOT necessarily true that you lost money. You can’t lose money that you never had. Those prices were not real…yes it would have been lucky to sell at that time, but chances are you would have purchased another higher priced home and then really would be in a position where you would lose money if you sold.
I could go on for days about why the market did what it did and why it needed to be corrected, but I think most people understand that now (plus I don’t want to bore you to tears). The point is that it is still the American dream to own a home and now you can do that and borrow money very cheaply to make it happen. For a buyer this means more house for less money. For a seller this means more buyers.
Happy Monday everyone!