Here’s why both buyers and sellers should be excited about our market.
When you hear agents say, “It’s a great time to buy and sell,” you’re probably wondering, which is it really? How can the market be good for buyers and sellers at the same time? Here are some numbers that prove why our unique market conditions truly make this a market where you have advantages as a seller and a buyer.
Why is it a good time to sell? For starters, prices are as high as they’ve been in a long time. In Athens/Clarke County, the average sale price of $263,000 is up $15,000 from where it was in 2019. Back in 2014, the average sale price was $173,000. We’re up $90,000 from that point.
As a buyer, your first instinct would probably be to not buy if prices are climbing like this. However, you have the benefit of low interest rates. Housing is more affordable this year than last year, even at higher prices. Lower interest rates equal lower monthly payments on your mortgage.
Let’s say you were going to get a $300,000 mortgage to buy a home at 4%, where rates were last year. Your principal and interest would cost you $1,432 per month on a 30-year term. Now that rates have dropped to under 3%, that same payment for the same loan would be $1,264 per month or less. That monthly savings of $168 truly adds up over 30 years.
To put it a different way, let’s say you could afford a payment of $1,500 per month. At a 4% interest rate, you could get a mortgage of up to $314,000. At a 3% rate, you could go all the way up to $355,000 with the same $1,500 payment. That gives you a little more than 40% more purchasing power.
Now you can see why we are telling the truth when we say that it’s a good time to both buy and sell, at least in fall 2020. If you have any questions about buying or selling a home, don’t hesitate to reach out via phone or email today. I would love to hear from you.