Real Estate Market and Math
The following information is based off of the average price of a 3 bedroom, single family home in the Coastal Carolinas Association of Realtors Multiple Listing Service and mortgage rates published by Freddie Mac.
January:
Average Price: $321,054
Down Payment (20%): $64,210.80
Mortgage Rate: 3.45%
Monthly Payment: $1,146.18
Market: Most buyers participated in multiple offer situations when purchasing a home. This competition drove buyers to offer more than list price and remove contingencies such as home inspections and appraisals. Sellers mostly dictated the terms of the sale and buyers met those demands.
Today:
Average Price: $380,650
Down Payment (20%): $76,130
Mortgage Rate: 6.90%
Monthly Payment: $2,005.57
Market: Buyers have more homes to choose from as inventory has reached October 2020 levels. With more homes in the market, sellers are competing against one another for buyers. This results in price reductions and sellers offering favorable terms including negotiating repairs and cash concessions. Many sellers are offering to buy down the interest for buyers who are borrowing or pay closing costs.
Comparing January to today shows two drastically different markets. Having a real estate professional in your corner has never been more important. If you’d like to talk through your circumstances and your goals, I’d love to help you make the right decision for you and your family.
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