Many potential home buyers are finding it difficult to filter out the media headlines and determine if now is the right time to buy a home. Most industry professionals agree buyers shouldn’t wait until prices and interest rates go up to buy -- now is the best time to buy a home.
Home prices in northern Nevada have dropped dramatically in the past few years and today’s mortgage interest rates are among the lowest in history. They’ve recently dipped again and borrowers can find a 30-year fixed loan for as low as 4.25percent. Rates were as high as 6.75 percent just a few years ago and in the double-digits 20 years ago.
As the economy rebounds the demands for mortgages will rise and so will interest rates. The effect of a rise in interest rates on monthly mortgage payments can be dramatic.
Based on the current median home sales price of $175,000, a 30-year fixed rate mortgage with a 4.25% interest rate has a monthly payment of $933 per month. At six percent the monthly payments increase to $1122 -- an increase of $189 a month. The total payments over the life of the loan increase by a whopping $68,040!
Home buyers that believe home prices will drop further could be making a very costly mistake. If the interest rates increase to six percent again, the home price would have to drop below $147,000 -- more than 16 percent -- to maintain the same monthly payments. House prices have begun to stabilize and bidding has become highly competitive, especially on the lower priced homes. It is highly unlikely that prices will drop that much.
Potential buyers frequently overlook the tax advantages of homeownership when considering if they should purchase a home. Mortgage interest and property taxes are great tax deductions.
While there are many variables to tax advantages, we estimate that a $175,000 mortgage with a 4.25 percent interest rate will generate $1,624 reduction in your tax liability annually.
This is the first time in four or five years that home prices and low interest rates have made northern Nevada an affordable place to live for most families. A family with a median income can afford to buy a median price home.
Low mortgage rates and affordable home prices will not last forever. The longer you wait the more you will have to pay to achieve your dream of homeownership!
Northern Nevada has many highly qualified Realtors, loan officers and builders that can be great help during your home shopping experience. To find more resources, contact the Builders Association of Northern Nevada at (775) 329-4611 or visit www.thebuilders.com.
Showing posts with label realtors. Show all posts
Showing posts with label realtors. Show all posts
Wednesday, October 27, 2010
Friday, January 15, 2010
Forecast for 2010 - partly sunny!
More than 250 people attended Forecast 2010 & Beyond Wednesday and discovered that there are some bright spots for this year!
Elliot Eisenberg reminded us that us that we are not the worst market in the country and that national economic indicators show that things should start to improve for 2010. Attendees got a good chuckle at his suggestion that we need to market ourselves better and suggested we change Reno to East Tahoe!
Tim Ruffin wins the quote of the day with “flat is the new up”. Commercial deals are flat, which is better than down!
Mark Krueger reported that more land deals happened at the end of 2009 than in the past 4 years and that the majority of those sales were to local builders.
Ken Amundson busted some myths and let us know that prices are not still falling, and in fact demand for homes under $200,000 may actually be driving prices back up.
The speakers presentations are now available on our website.
Elliot Eisenberg reminded us that us that we are not the worst market in the country and that national economic indicators show that things should start to improve for 2010. Attendees got a good chuckle at his suggestion that we need to market ourselves better and suggested we change Reno to East Tahoe!
Tim Ruffin wins the quote of the day with “flat is the new up”. Commercial deals are flat, which is better than down!
Mark Krueger reported that more land deals happened at the end of 2009 than in the past 4 years and that the majority of those sales were to local builders.
Ken Amundson busted some myths and let us know that prices are not still falling, and in fact demand for homes under $200,000 may actually be driving prices back up.
The speakers presentations are now available on our website.
Thursday, September 10, 2009
Realtor and new home sales agent close a sale thanks to Facebook!
We just concluded a fabulous seminar on social media from KPS|3 Marketing (thank you Stephanie Kruse and Mike McDowell!). Just to drive the point home a little bit more, here is an article from the Nation’s Building News yesterday, published by the National Association of Home Builders.
It give a specific example of a Realtor and a new home sales agent connecting n Facebook making a sale. It’s just one more tidbit to show you how important new media, specifically social media, can be to your business.
Find out more about how KPS|3 can help your business prosper through this recession. Visit their website or call them at (775) 686-7439.
It give a specific example of a Realtor and a new home sales agent connecting n Facebook making a sale. It’s just one more tidbit to show you how important new media, specifically social media, can be to your business.
Find out more about how KPS|3 can help your business prosper through this recession. Visit their website or call them at (775) 686-7439.
Monday, August 24, 2009
Knowledge You Need to Stay UP in a DOWN Market
Knowledge is power, according to Doug Smith. But, Knowledge is not power without action. What actions can you take to help you stay up in a down market? Find out at The Builders Mid-Year Construction Analysis Wednesday at John Ascuaga’s Nugget. RSVP required.
Tuesday, December 23, 2008
You can help the economy...FIX HOUSING FIRST!
The historic increase in foreclosures, tightened mortgage qualifying criteria, and general declining economic conditions have significantly cut demand for housing. Housing wealth is the primary source of savings for most households and a key driver of consumer spending. BANN is just one of the 600 + businesses supporting the Fix housing First Coalition, lead by NAHB.
The coalition plan suggests, a new home buyer tax credit would be substantially increased to 10 percent of the price of the home, up to $22,000. Unlike the current credit, it would not be limited to first-time buyers and the homeowner would not be required to repay the credit.
The coalition recommends a mortgage interest rate buy down to get buyers back in the market and further stimulate the economy. Suggested interest rates range from 3.99 to 2.99 %for homes purchased by the end of December 2009. Intensive efforts to prevent foreclosures and keep people in their homes are also included.
The stimulus plan will produce:
• 1.2 million additional home sales in the first wave
• Another 274,000 from a ripple effect
• Absorption of 211,000 vacant units
• 593,000 jobs across all industries
• $29 billion in wages and salaries
• $13 billion in small business income
• $20 billion in tax revenue for federal, state and local governments
Congress is currently crafting economic stimulus legislation that will most likely be debated and voted on by Congress in early January. It is expected that President-elect Barack Obama will sign stimulus legislation soon after his inauguration on January 20. Now is the time to tell Congress to fix housing first and ensure that housing recovery measures are incorporated into the stimulus package.
Here’s how you can help…visit www.FixHousingFirst.com and click on the “Tell Congress Now” link to send an electronic letter to Congress and urge their support for a homebuyer tax credit and short-term mortgage subsidy. In addition, ask Congress to re-examine the need for regulators and lenders to give leeway to residential construction borrowers who have loans in good standing.
The coalition plan suggests, a new home buyer tax credit would be substantially increased to 10 percent of the price of the home, up to $22,000. Unlike the current credit, it would not be limited to first-time buyers and the homeowner would not be required to repay the credit.
The coalition recommends a mortgage interest rate buy down to get buyers back in the market and further stimulate the economy. Suggested interest rates range from 3.99 to 2.99 %for homes purchased by the end of December 2009. Intensive efforts to prevent foreclosures and keep people in their homes are also included.
The stimulus plan will produce:
• 1.2 million additional home sales in the first wave
• Another 274,000 from a ripple effect
• Absorption of 211,000 vacant units
• 593,000 jobs across all industries
• $29 billion in wages and salaries
• $13 billion in small business income
• $20 billion in tax revenue for federal, state and local governments
Congress is currently crafting economic stimulus legislation that will most likely be debated and voted on by Congress in early January. It is expected that President-elect Barack Obama will sign stimulus legislation soon after his inauguration on January 20. Now is the time to tell Congress to fix housing first and ensure that housing recovery measures are incorporated into the stimulus package.
Here’s how you can help…visit www.FixHousingFirst.com and click on the “Tell Congress Now” link to send an electronic letter to Congress and urge their support for a homebuyer tax credit and short-term mortgage subsidy. In addition, ask Congress to re-examine the need for regulators and lenders to give leeway to residential construction borrowers who have loans in good standing.
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