While you’re making a list and checking in twice during the holidays, consider some of the national and local data on housing prices and interest rates.
You just might say, its time to shop……… for a house or investment property.
Did you know that in many cities across the country the monthly cost of owning a home is more affordable now than at any time in the last 15 years?
And, on top of that, owning is less expensive than renting?
This is because home prices have fallen and interest rates are low (around 4% and sometimes lower), while rent prices have increased.
A recent article in the Wall Street Journal included projections that rent prices will increase more than 4% in 2012 in many parts of the U.S.
According to many industry experts, home prices are expected to decline even further, making affordability a continuing trend in the coming months.
The reason behind more potential price declines is the anticipated inventory of “distressed” sales, also known as bank-owned properties. However, looking on the bright side, this inventory of foreclosed/bank-owned homes is not nearly as high as one year ago.
So how does all this national information relate to our local area?
Let’s look at a snapshot of four areas and their averages from September to this point in December: Lansdale and North Wales Boroughs; Montgomery and Towamencin Townships. There were 228 homes listed for sale. The number of homes sold during this time period is 125; plus another 105 homes that are now pending sale.
Note that the average days on market of a property listed for sale is 96 days and that there is currently a 7 month supply of houses on the market. That means that it would take 7 months to deplete this current accumulated supply.
So how did the prices fair? Well, the average listed price of the 228 homes is $280,380. The average sold price was $255,178.00 or 91% of the original asking price. If you are curious as to the price of the lowest sold price during this time frame, according to Trend Multiple Listing Service, it was $90,000. The highest sold price was $660,000.
The big question is does it cost less to rent here than to buy. A few months back I wrote about this exact topic and found that in some cases it was and in other cases it was not. It depends on what you buy and after insurance, taxes and possibly a homeowner’s/condo association fees are factored in whether it is less than, greater than or equal to your monthly rent.
One thing I know for sure: you usually end up with more for your money when you buy a home; there are tax benefits to ownership, and that one day you will have built up equity.
'Tis the Season To Shop... For a House By our team member Gina Wherry originally appeared in the Montgomeryville-Lansdale Patch.
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
'Tis the Season To Shop... For a House - Copyright © 2011, The Scott Loper Team, All rights reserved.
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The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
Gina Wherry - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213
