So What’s The REAL Story Of Increased Rates & Increased House Prices?

People hear the news and think the market is bad but they hear other people telling them the market is great.

At the end of the day over 2/3 of homes purchased are purchased using a mortgage and this is where the real impact is felt.

 

Md Suburbs Home Prices Over 5 Years

 

 

Mortgage Rates Past 12 Months

Okay, So What?

Here is the problem… Rates have more than doubled causing payments to go up 50% in just 12 months

THEN

Home prices have increased by over 50% in the past 5 years

So… payments on houses are DOUBLE what they were!

#Real Numbers#

Okay so a 300k house in 2018 is now 500k and the payment went from $1,800/month to over $3,600/Month!!

How about a 600k home?

Here is where the problem is… a two-income family making 150k could easily afford a 600k mortgage 5 years ago when it was under 3k per month – easy peasy lemon squeezy!

Now? It’s almost $7,000 a month for the same house which now costs $900,000!

That’s a HUGE problem and it’s the reason the top of the market is struggling right now.

It’s also the reason sellers in that house won’t sell it because a similar house cost $7,000 a month… 😬

 

 

 

P.S. It’s more important than ever to have a trusted advisor helping you in this market. If you or someone you know needs top dollar for their home, text/call me 443-624-9398