Wednesday, November 27, 2019 / by Judy Hamilton
What’s happening in our National Real Estate market and how does it apply to you? Well, from my perspective, now may be a very good time to buy and here’s why. Hi, I’m Judy Hamilton with Homes By Judy.
Great news, the Percentage of income needed to buy a median priced home is down to 15.7% and the historic norm is 21.2%. So, taking everything into consideration, including the price, mortgage rate, and wages, it’s more affordable to buy a home now than it has been in the past. This is also great for sellers because it means that more buyers can afford to purchase. This is especially good during the holiday season as we tend to see the housing market slow up a bit.
Let’s also talk again about the talk of the Recession. Is a recession in our future? Many real estate experts, advisors and analysts across the nation seem to believe so, but I want to remind you again that recession does not equal housing crisis. Here’s a graph of the last 5 recessions, and we saw prices increase in 3 out of the last 5 recessions. We need to be more worried about all the hype and negative media the news is trying to create. Also, according to the Home Price Expectation Survey which is made up of over 100 Real Estate Experts, Financial Advisors, Analysts and Economists, we are going to see appreciation over the next 5 years. For example, example a home priced at $250,000 should see a $37,500 increase in equity. So, we are anticipated to still see equity, even during the projected recession, just not as much as we have seen in previous years. Also, remember, don’t wait to buy because you’re afraid of all this negative media, as rents are also increasing and are anticipated to continue to go up. So, don’t listen to all the hype, listen to the facts.
I am always happy to help and will make sure that your best interests are served. This is Judy Hamilton with Homes By Judy.