Maybe in the near future demand and supply will get closer to one another with the increase in starts and permits in the pipeline. Here in Prescott, I was curious about the 500k to 600k price range activity in the Prescott proper area excluding the surrounding towns and cities. There are about 103 site built homes listed in the 500k to 600k range either for sale or in escrow. As of the writing, 60 are available, and 43 are in escrow. If you are financing your next purchase, it may be a good time to take the dive. A 1.5% difference in a 30 year mortgage interest rate on $500,000 (from 3.5% to 5%) can be a $500 +/- difference in a monthly payment. What can you do with $500 monthly? Lots!
Monday, February 24, 2020
500k to 600k Activity......
As of this writing, there is a deluge of information about markets, coronavirus impact, real estate market observations, short-term outlook, interest rates, baby boomers, millennials and on and on.......One commentator says housing is strong, inventory is down, demand is up, interest rates are down, therefore it is a great time to buy. Another on the same page says folks are choosing to rent still, the boomers homes are not homes millennials will buy, re-fi's are slowing things down....etc. Most have learned to sift through the information and know you can get opposing opinions from literally the same information source. One bit of news is indisputable though, interest rates are as low as ever...8 years ago everyone was bracing for increasing rates, but for now, borrowing continues to be a bargain. In a very general sense, it seems supply is low. However, housing starts are up in the private sector. Here is the Fed Reserve Bank of St. Louis 5 year starts chart:
Maybe in the near future demand and supply will get closer to one another with the increase in starts and permits in the pipeline. Here in Prescott, I was curious about the 500k to 600k price range activity in the Prescott proper area excluding the surrounding towns and cities. There are about 103 site built homes listed in the 500k to 600k range either for sale or in escrow. As of the writing, 60 are available, and 43 are in escrow. If you are financing your next purchase, it may be a good time to take the dive. A 1.5% difference in a 30 year mortgage interest rate on $500,000 (from 3.5% to 5%) can be a $500 +/- difference in a monthly payment. What can you do with $500 monthly? Lots!
Maybe in the near future demand and supply will get closer to one another with the increase in starts and permits in the pipeline. Here in Prescott, I was curious about the 500k to 600k price range activity in the Prescott proper area excluding the surrounding towns and cities. There are about 103 site built homes listed in the 500k to 600k range either for sale or in escrow. As of the writing, 60 are available, and 43 are in escrow. If you are financing your next purchase, it may be a good time to take the dive. A 1.5% difference in a 30 year mortgage interest rate on $500,000 (from 3.5% to 5%) can be a $500 +/- difference in a monthly payment. What can you do with $500 monthly? Lots!
