When I started my career in real estate in 2009, buyers were locking in rates around 5.25% on a 30 year fixed mortgage loan. At the time, market watchers couldn’t believe how low the prices and rates were. Against some expectations, the market conditions got better for buyers!
This past year, buyers locked in 30 year fixed mortgage rates below 4%! Combine this with undervalued prices, and high inventory, and we have one of the best (if not the best) market to purchase a home! In shopping terms, the store has every color and size available, discounted, and your credit card is only charging you 4% interest.
How deep are these discounts?
From 2007 to 2008, York county median home prices fell 6%!
From 2008 to 2009, the median home price in York county dropped 3%.
The median home price from the year 2009 to 2010 decreased in by 4%.
And when we compare the first 10 months of 2010 to the first 10 months of this year, median home prices have dropped another 5%!
If you are a buyer in this market, this does NOT mean that you can find a house, look at the price, and knock 15-20% off of the listing price and make an offer. If the home is priced well (your Realtor can tell you), it is already discounted at list price. So if you’re looking for the bargain of the century… in other words, you have looked at numerous homes and have found one which you determined to be the best home for the price… and you still make an offer that is considerably less than the asking price, don’t be surprised if you are rejected!
Don’t get me wrong– I will gladly represent you as long as you know what you are in for. But if you consider the time that it takes to find the house, submit the longshot offer, get rejected, move on to the next house, and repeat this cycle, you may wait yourself out of the best time in history to buy a house.
If interest rates would increase from 4% to 6% on the current York County median home price in 2011 ($144,500), the difference in MONTHLY payment on the principal and interest of the 30-year loan is $176.48! In other words, this is the deal of our lives!
If you know someone who is interested in buying a house, I would love to help them! Have them contact me.
York and Adams Counties housing reports from RAYAC: http://www.rayac.com/sales_stats.php