+(resized).jpg)
Here’s a very brief look at the current housing scene in NW Arkansas…
If you are a buyer, the opportunities are phenomenal right now. Mortgage rates are at historic lows and by historic I don’t mean the past 10 or 20 years. I mean interest rates have never, ever been this low, at least since they’ve been keeping track.
Even a couple of years ago, no one ever thought possible such rates as 3.5% on at 15-year fixed-rate mortgage or 4.25% for a 30-year fixed rate mortgage. This is simply fantastic for anyone looking to purchase a home and those rates are available right here in NW Arkansas.
The other truly bright spot is the average cost per square foot continues to drop. In fact, prices are back to 2004 levels. I realize this is terrible news for sellers but what a fantastic opportunity for buyers.
Even when home prices were this low in 2004 or thereabouts, interest rates were much higher.
So right now, you could say this is a “perfect storm” situation for buyers.
Apparently many people are taking note of this. Sales of homes in NW Arkansas rose approximately 20% compared to this time last year.
As a Certified Residential Specialist, I am ready, willing and able to help you take advantage of this great buyer’s market. Call me at 479-966-0435.
For more information:
Ozarks Unbound Blog
Arkansas Business-1
Arkansas Business-2
Arvest Bank
Showing posts with label mortgage rates. Show all posts
Showing posts with label mortgage rates. Show all posts
Thursday, October 13, 2011
Sunday, June 22, 2008
Now is a Great Time to Purchase a Home in NW Arkansas
It is a great time to purchase a home in NW Arkansas and here’s why:
The median home price in Northwest Arkansas is approximately $155,000 and there are well over 1,000 homes for sale for less than that. New homes, resale homes, condos, country settings, subdivisions close to work, and everything in between are available.
Prices have come down but may not come down much more. No one can accurately predict when prices will hit bottom and begin to climb upward again.
Interest rates are extremely low -- 6% or below for fixed-rate 30-year mortgages. Rates on 15-year mortgages are even lower.
Interest rates and sales prices of homes do not go up and down together so waiting to see if home prices will go lower could cost you more in the long run. For example, say you waited for the purchase price of a home to drop $10,000 but interest rates moved up by as little as one half of one point during this period. You would end up losing money because of the higher monthly mortgage payment you would be making over the life of the loan.
Rent payments can change substantially from year-to-year but a fixed-rate mortgage offers unbeatable stability.
A wide range of financing options is available for consumers in all price ranges. Lenders have plenty of money to loan to credit worthy homebuyers.
Many sellers are offering incentives to buy, such as help with closing costs or allowances for repairs.
Although local housing markets adjust periodically according to overall economic conditions, over the long term real estate has consistently appreciated.
Homeownership is a stepping-stone to personal financial security and is the single largest creator of wealth for Americans. Historically, home appreciation has risen 5-6% annually. At that rate, the value of a home doubles every 13 years.
Income tax incentives are considerable. The interest you pay on your mortgage and property taxes are deductible at income tax time.
Even better than the annual income tax deductions for interest and taxes is tax-free profit when you sell your home. Couples who own and live in their home for two years and then sell can keep up to $500,000 of the profit tax-free. (An unmarried owner can keep $250,000 profit tax-free.)
Tax-free profit can be repeated over and over. If the person or couple buys another home and lives in it home for at least two years, the same rules hold true when they sell again.
The intangible benefits of homeownership are considerable. Overall, homeownership strengthens communities. Homeowners tend to be active in charities, churches and neighborhood activities. Homeownership inspires civic responsibility, and homeowners are more likely to vote and get involved with local issues. Children of homeowners are generally better students, due in part to the stability in their lives.
All the above, plus the personal satisfaction of owning your own home should be more than enough to take action now. Homeownership is truly the cornerstone of the American way of life, and the fulfillment of the American dream.
For more information:
http://www.buynwanow.com/
The median home price in Northwest Arkansas is approximately $155,000 and there are well over 1,000 homes for sale for less than that. New homes, resale homes, condos, country settings, subdivisions close to work, and everything in between are available.
Prices have come down but may not come down much more. No one can accurately predict when prices will hit bottom and begin to climb upward again.
Interest rates are extremely low -- 6% or below for fixed-rate 30-year mortgages. Rates on 15-year mortgages are even lower.
Interest rates and sales prices of homes do not go up and down together so waiting to see if home prices will go lower could cost you more in the long run. For example, say you waited for the purchase price of a home to drop $10,000 but interest rates moved up by as little as one half of one point during this period. You would end up losing money because of the higher monthly mortgage payment you would be making over the life of the loan.
Rent payments can change substantially from year-to-year but a fixed-rate mortgage offers unbeatable stability.
A wide range of financing options is available for consumers in all price ranges. Lenders have plenty of money to loan to credit worthy homebuyers.
Many sellers are offering incentives to buy, such as help with closing costs or allowances for repairs.
Although local housing markets adjust periodically according to overall economic conditions, over the long term real estate has consistently appreciated.
Homeownership is a stepping-stone to personal financial security and is the single largest creator of wealth for Americans. Historically, home appreciation has risen 5-6% annually. At that rate, the value of a home doubles every 13 years.
Income tax incentives are considerable. The interest you pay on your mortgage and property taxes are deductible at income tax time.
Even better than the annual income tax deductions for interest and taxes is tax-free profit when you sell your home. Couples who own and live in their home for two years and then sell can keep up to $500,000 of the profit tax-free. (An unmarried owner can keep $250,000 profit tax-free.)
Tax-free profit can be repeated over and over. If the person or couple buys another home and lives in it home for at least two years, the same rules hold true when they sell again.
The intangible benefits of homeownership are considerable. Overall, homeownership strengthens communities. Homeowners tend to be active in charities, churches and neighborhood activities. Homeownership inspires civic responsibility, and homeowners are more likely to vote and get involved with local issues. Children of homeowners are generally better students, due in part to the stability in their lives.
All the above, plus the personal satisfaction of owning your own home should be more than enough to take action now. Homeownership is truly the cornerstone of the American way of life, and the fulfillment of the American dream.
For more information:
http://www.buynwanow.com/
Monday, June 19, 2006
Looks Like the Adjustment Period is Here Too
It appears an adjustment period in NWA real estate has begun. Home prices are leveling out. There is a large inventory of homes for sale in the $200,000 and up category. I don’t believe prices will go down, but at the very least, I do not think they will rise as rapidly as they have in the past couple of years.
There are more homes to choose from now and buyers are taking their time looking. Even homes under $150K are staying on the market longer, where last year the good ones would have sold within a week or so.
Mortgage rates have been slowly but steadily rising and that affects home prices and home sales. When interest rates were at their lowest, many buyers who wanted to move up to a bigger, better home did so. Those people are now homeowners, not buyers. And for those who didn't buy, many are now staying in their current homes, since higher interest rates mean that they can purchase less house for the same money now.
What all this means to you depends on whether you are buying, selling, or staying put.
For buyers, it means more choices, perhaps a bit more home or extra amenities than they expected, and more time to make a decision.
For sellers, it means pricing the home realistically, perhaps doing a little extra sprucing up, and being patient.
For those staying put, the adjustment has no short-term effects. Home prices have traditionally increased over time and will no doubt continue to do so in the long term.
In a recent article, Parade Magazine stated “The wild housing boom of the past few years is over.” I would have to agree. The unprecedented, unwarranted increases experienced in some parts of the country are now coming down to more realistic numbers. And the high inventory of homes available in NW Arkansas, as well as higher interest rates, are contributing to an "adjustment" here as well.
Home prices in Northwest Arkansas have also risen significantly in the past few years but in more rational amounts than some of the “hot” markets such as San Francisco, Boston, Las Vegas, and Phoenix, where home prices have skyrocketed in just a few short years. A correction in that type of market is inevitable. It is also occurring here but on a smaller scale.
The thing to remember is that what happens in one part of the country doesn’t necessarily have any correlation to another part. In other words, the current adjustment in the real estate market will have many variations throughout the country. The traditional wisdom is that all real estate is "local" and that is certainly true here in NW Arkansas. Reading national headlines and statistics can cause undue concern. This adjustment period was not unexpected. The real estate market has always experienced swings and the current swing favors buyers.
People have not stopped moving to Northwest Arkansas. Good homes that are fairly priced continue to sell. But since there are more houses on the market, competition among sellers is higher, so the key is to price one's home at market value (or less) if a quick sale is needed. For buyers, there's a lot more to choose from.
For more information:
http://www.parade.com/articles/editions/2006/edition_05-21-2006/Buy-Sell
http://www.nwanews.com/adg/Business/155811/
There are more homes to choose from now and buyers are taking their time looking. Even homes under $150K are staying on the market longer, where last year the good ones would have sold within a week or so.
Mortgage rates have been slowly but steadily rising and that affects home prices and home sales. When interest rates were at their lowest, many buyers who wanted to move up to a bigger, better home did so. Those people are now homeowners, not buyers. And for those who didn't buy, many are now staying in their current homes, since higher interest rates mean that they can purchase less house for the same money now.
What all this means to you depends on whether you are buying, selling, or staying put.
For buyers, it means more choices, perhaps a bit more home or extra amenities than they expected, and more time to make a decision.
For sellers, it means pricing the home realistically, perhaps doing a little extra sprucing up, and being patient.
For those staying put, the adjustment has no short-term effects. Home prices have traditionally increased over time and will no doubt continue to do so in the long term.
In a recent article, Parade Magazine stated “The wild housing boom of the past few years is over.” I would have to agree. The unprecedented, unwarranted increases experienced in some parts of the country are now coming down to more realistic numbers. And the high inventory of homes available in NW Arkansas, as well as higher interest rates, are contributing to an "adjustment" here as well.
Home prices in Northwest Arkansas have also risen significantly in the past few years but in more rational amounts than some of the “hot” markets such as San Francisco, Boston, Las Vegas, and Phoenix, where home prices have skyrocketed in just a few short years. A correction in that type of market is inevitable. It is also occurring here but on a smaller scale.
The thing to remember is that what happens in one part of the country doesn’t necessarily have any correlation to another part. In other words, the current adjustment in the real estate market will have many variations throughout the country. The traditional wisdom is that all real estate is "local" and that is certainly true here in NW Arkansas. Reading national headlines and statistics can cause undue concern. This adjustment period was not unexpected. The real estate market has always experienced swings and the current swing favors buyers.
People have not stopped moving to Northwest Arkansas. Good homes that are fairly priced continue to sell. But since there are more houses on the market, competition among sellers is higher, so the key is to price one's home at market value (or less) if a quick sale is needed. For buyers, there's a lot more to choose from.
For more information:
http://www.parade.com/articles/editions/2006/edition_05-21-2006/Buy-Sell
http://www.nwanews.com/adg/Business/155811/
Subscribe to:
Posts (Atom)
