So this week, I was inspired to write about what I’ve learned of our Moscow real estate market coupled with the current rates and turning that talk you’ve had with your spouse about upgrading to another home to get that missing yet ever so desired home feature. Maybe it’s more land or more storage or bedrooms all on the same floor–whatever it is, now is the time to pull the trigger and here’s my reasoning.
First off, Moscow’s real estate market favors sellers right now. The inventory of properties for sale versus the number of buyers combing the listings is quite disparate with far more buyers than sellers. Add in the great rates that are at historic lows (lower than the lows we’ve been seeing for years) and add in the years of Moscow area home appreciation, and that equals dollars, many, many dollars homeowners can put towards that forever home. Now, we are closer to making that dream home a reality and with the help of a good lender, a reasonable monthly mortgage thanks to those low rates.
Give me example of what kind of rates can be had you ask, Chimney Rock Mortgage, a mortgage brokerage located in Spokane is offering the below deal through the end of September.
And here are the rates currently (09/09/2016) offered by UMPQUA Bank…
As you can see, there are deals out there, and I suspect we’ll continue to see low rates until the presidential election is over. Rumors on the “Wallstreet beat” has it that the Federal Open Market Committee who controls when rates go up or down, will begin raising rates. Why does that matter to you? Well, if rates go up one point, that would equal 6% less of a home price tag you can afford. For example, if you could qualify for a home loan of $200,00, after rates go up one point, to achieve the same monthly payment, the new amount you could qualify for would be $188,000 or $12,000 less than when the rate was one point lower. In essence, when rates go up, people applying for a new home loan will pay more in rates which impacts that ceiling we all have for what we can afford to pay each month.
Now that I’ve depressed you a bit, let me remind you of the growth in local home appreciation over recent years. If you’ve owned your home for some years here in Moscow or surrounding areas, you’ve gained equity (money) in your home just by owning it. For instance, if you paid $200,000 for your home, depending on how much time has lapsed (a lot of time = a lot of equity while less time = less equity) you have a house that may sell for $225,000. Just by living in the home, you could have gained $25,000 that could go towards that dream home. Again–this is merely for an example! I strongly advise letting myself or another Real Estate agent your trust to assess the current value of your home to know exactly how much you’ve gained in equity.
Bottom line: Moscow is in a seller’s market with limited homes available and many buyers on the prowl. And if you do sell, you can take advantage of the built up equity and the low rates to buy that forever home with the bells and whistles you’ve always dreamed of. The rates may go up soon, so have that important discussion with your significant other and decide, is now the time to go after that dream home? If it feels overwhelming then just take the one step of finding out what your home would fetch now in our seller’s market to see if it may be worth all the effort. Contact me or that agent you already know well and trust.