Buyers, did you know that right now, this second...there are 94 homes on the market in Longmont that have 3 bedrooms and are priced between $100,000 and $200,000? I know! Really! 168 homes that are 2 bedrooms or larger!
Did you also know that interest rates are at historic lows? Like, in a lot of cases cheaper than renting low?
You’re right, the government is not offering any more tax credits for first time or move up buyers but you didn’t miss out. In fact, if you were to buy a home last year at “lets say” 5.5% and received $8000.00 to do so, you would be saving thousands of dollars more buying the same priced home today at “lets say” 4.5%. Not to mention getting to write off that interest according to your tax bracket.
Lets see some proof:
*Consider a home purchased today for $175,000 on a 30 year FHA loan fixed at 4.25%, your payment would be $1127 per month. Lets say that you bought last year, in fact it was the home across the street from the previous example! Sales price was the same at $175,000 on a 30 year FHA loan fixed at 5.25% (exactly 1% higher).
$175k @ 5.25% for 30 years = $1230 per month
$175k @ 0.00% for 30 years = $1127 per month
Difference of $103 per month, $1236 Per Year and over 30 years....an amazing $37,080! Take out the $8,000 tax credit from this number and you are still saving $29,080 over that of the higher interest rate!
So while yes, buyers DID get a quick $8000.00, the reality is they are still paying larger monthly payments equalling almost $30k more that a buyer at todays rate.
Every market has it up sides!
Have a SAFE and HAPPY HALLOWEEN WEEKEND!
For me I can't even imagine these prices these are too high prices to buy a 3 bedroom home even if it is $100,000 or $200,000, but may be for many people living there can afford these prices and can buy these homes.
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