I keep saying rates are incredibly low, but what does that actually mean? Let’s look at some facts;
In 1995, the median home price was $114,600. (Adjusted for inflation, that would be $178,074 in today’s prices.) The average mortgage rate was 7.9%. This means on that $114,600 home, you would have been paying $833 principal and interest. (Adjusted for inflation, that would be $1,295 in today’s market.)
In 2015 the median home price was $222,400 and the median mortgage rate was 3.86% which would make your monthly principal and interest payment $1,044.
Using the adjusted for inflation numbers from 1995, that means that right now you can buy a bigger, or better house ($178,074 vs $222,400) and pay less money for it ($1,295 vs $1,044).
That means that right now it is an incredible time to buy. You have more spending power. Since 2010, rates have been their lowest in February. Meaning that now we are on a climb up, historically.
That also means that it is a great time to sell. There are a lot of buyers out there trying to take advantage of this cheap money. And as of the beginning of this week, the Des Moines Area Multiple Listing Service dropped below the 3,000 level of inventory for the first time in a decade. That means that right now you have the least competition for selling than you have had since 2006.
If you are thinking about buying or selling, this is incredibly powerful information for you. Do not wait. Historically rates go up come March, April and May. Historically, inventory goes way up once Spring hits. Right now both are at historical lows. If you know someone that has been talking about buying or selling. Show them this. Then have them call me, Ryan Lynch: 515.639.0047 or email at RyanLynch@KW.com. Get more money for your house. Sell it in less time. Use a professional that actually watches all of this information for you to negotiate aggressively for you. Call me.
