June National Market Update #5
With all that’s going on in the world, will I be able to afford to buy a home? Will I be left homeless if I sell the one I’m in? Bloomberg has said, “New data from the Harris Poll show 84% of Americans plan to cut back spending as a result of price spikes. More than 70% of respondents said they’re feeling the effects of inflation, the most in gas prices and groceries.” How would affording a home be any different?
We want to help answer all of these questions for you. Let’s look at how mortgage payments have changed over the last year or so. Taking projections into consideration, we can see the difference in where we were and where we are going.
In January of 2021 we had a fairly low mortgage payment of a little over $1,200. Look at the way interest rates are going, October of 2022 could bring us a little over $1,703. This brings us to about a $500 difference in mortgage payments. That’s a lot of money, especially when prices everywhere are rising. The National Association of Realtors looks at this from the wage perspective stating, “The average consumer is spending an additional $429 monthly for items other than shelter. Meanwhile, average wages rose just $212 per month.” But don’t let these discourage you! This only means that you need an experienced agent when you are looking to buy a home who knows your needs, knows the market, and can negotiate on your behalf. If you are wanting to buy or sell your home – or both! – make sure you connect with my team and we can help guide you through and help you decide what’s best for your family in this market.
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