Savings on homes in 2009 vs. 2008
With today’s low interest rates and market conditions, a buyer can effectively buy a $472,000 home for $350,000!
At 6 ¼% (the average rate last spring), the payment on a $350,000 home with 20% down is EQUAL to the payment today on a $425,000 home at 4.5%!
On top of that, a $425,000 home that’s on the market today would probably have sold for much more last year!
If prices have declined by 10%, then they are getting a $472,000 home for the cost of a $350,000 home.
That is why home affordability is at its highest point ever!
Next year, many people will be scratching their heads and wondering why they didn’t buy now.
Houses and stocks are the only thing people don’t want to buy when they are on ‘sale’!