Were home askng prices getting above the market?

The chart belows shows the activity for last week.  Click on any of the numbers to see the actual listings for that catagory.  These links will stay active for about 30 days.

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10-Aug 65 10 0 43 82 48

Looking at the chart above, it does indeed look like the asking prices have gone higher than the buyers are willing to pay.  We see this as encouraging.  It means that the likelyhood of run-away overpricing is being kept in check this time.

So… Mr. & Mrs. (and Ms. & Miss) buyer.  You still have a GREAT OPPORTUNITY!  Now is the time to buy; before interest rates go up more.  And go up they will.

How much would an increased interest rate hurt your buying power?  Of course that depends upon your situation, but we have had many buyers need to drop the shopping price for their new home by $25,000 to $45,000 dollars!  That’s a lot of house!

Here’s an example for you.  Let’s say you are purchasing a home for $175,000 (a pretty realistic number today).  We’ll assume you have the 5% down payment, and can cover the closing costs.  Here are a couple quick numbers for comparison showing the interest rate , the monthly payment (P & I only) and the interest paid over the life of the loan.

Interest rate Monthly payment Total interest paid
3.75% $787.30 $113,428.00
4.75% $886.80 $149,248.00
5.75% $992.07 $187,145.20
6.75% $1,102.62 $226,943.20

As you can see in the chart above, the amout of interest paid at 6.75% has DOUBLED over the total for the 3.75% rate.

Whould $113,430 make a difference to you?  Call today to see how we can save you over $100,000. 

Call 530 315-2808.  Or eMail us HERE.  Visit our Web Site.

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