Katie McBride's Blog
The gap between the increase in personal income and residential real estate prices has been used to defend the concept that we are experiencing an affordability crisis in housing today.
It is true that home prices and wages are two key elements in any affordability equation. There is, however, an extremely important third component to that equation: mortgage interest rates.
Mortgage interest rates have fallen by more than a full percentage point from this time last year. Today’s rate is 3.75%; it was 4.86% at this time last year. This has dramatically increased a purchaser’s ability to afford a home.
Here are three reports validating that purchasing a home is in fact more affordable today than it was a year ago:
“Falling mortgage rates and slower home-price growth mean that many buyers this year are committing to lower mortgage payments than they would have faced for the same home last year. After rising at a double-digit annual pace in 2018, the principal-and-interest payment on the nation’s median-priced home – what we call the “typical mortgage payment”– fell year-over-year again.”
“At the national level, housing affordability is up from last month and up from a year ago…All four regions saw an increase in affordability from a year ago…Payment as a percentage of income was down from a year ago.”
“In 2019, the dynamic duo of lower mortgage rates and rising incomes overcame the negative impact of rising house price appreciation on affordability. Indeed, affordability reached its highest point since January 2018. Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”
Though the price of homes may still be rising, the cost of purchasing a home is actually falling. If you’re thinking of buying your first home or moving up to your dream home, let’s connect so you can better understand the difference between the two.
As a home seller, you'll want to do whatever you can to prepare your residence for an open house. By doing so, you can transform your ordinary home into an exceptional one, thereby increasing the likelihood of making an unforgettable first impression on large groups of open house guests.
What does it take to get a residence ready for an open house? Here are three tips to help you update your home, and ultimately, host a memorable open house.
1. Declutter Your Home as Much as Possible
If your hallways, bedrooms and other home areas are loaded with clutter, now is the perfect time to get rid of various unnecessary items. That way, you can show off the true size and beauty of your living space.
For those who have antiques, photographs and other items they want to keep, it may be worthwhile to rent a storage unit. Or, friends and family members may be able to hold on to some of your belongings until you sell your house.
On the other hand, if there are items you need to eliminate immediately, you can always host a yard sale or list items online. You may be able to donate items that are in good condition to local charities as well.
2. Perform Home Exterior Maintenance
Let's face it – no one wants to buy a home with a messy front lawn or cracked siding. However, a home seller who allocates the necessary time and resources to identify home exterior issues can resolve such problems without delay.
Spend some time evaluating your house's exterior – you'll be glad you did. With a close look at your home's exterior, you can establish home maintenance priorities.
Then, get to work. Perform all necessary home exterior repairs, and you can boost your home's chances of making a positive first impression on homebuyers who visit during an open house.
3. Collaborate with a Real Estate Agent
When it comes to preparing for an open house, there's a lot to consider. Fortunately, a real estate agent can help you keep things in perspective and ensure your open house is an instant success.
A real estate agent will teach you everything you need to know about an open house. He or she will offer expert tips to help you get your residence ready for an open house, along with provide insights into what you should expect following the event's completion.
Of course, a real estate agent is happy to help you at each stage of the home selling journey too. This housing market professional will do whatever it takes to help you list a home, price it accordingly and promote it to the right groups of homebuyers consistently.
Make your open house a joyous occasion for both you and potential homebuyers. Use the aforementioned tips, and a home seller can revamp a house's interior and exterior and ensure a residence makes a long-lasting impression on homebuyers.
33 Cottage Street, Westborough, MA 01581
In the community of Millis, MA in the past month there have been 9 homes sold. The average sale price of these homes was $519,058 and the homes were on the market an average of 75 days. There have been 8 homes listed for sale during the past month in Millis, MA.
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Much has been written about how residential real estate values have increased since the housing market started its recovery in 2012. However, little has been shared about what has taken place with residential rental prices. Let’s shed a little light on this subject.
In the most recent Apartment Rent Report, RentCafe explains how rents have continued to increase over the last twelve months because of a large demand and a limited supply.
“Continued interest in rental apartments and slowing construction keeps the national average rent on a strong upward trend.”
Zillow, in its latest Rent Index, agreed that rents are continuing on an “upward trend” across most of the country, and that the trend is accelerating:
“The median U.S. rent grew 2% year-over-year, to $1,595 per month. National rent growth is faster than a year ago, and while 46 of the 50 largest markets are showing deceleration in annual home value growth, annual rent growth is accelerating in 41 of the largest 50 markets.”
It is true that home prices have risen over the past seven years, increasing the cost of owning a home. However, the cost of renting a home has also increased over that same time period.