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
I was totally hooked in by your Heading. Great title. Well written blog. Where did you find the great picture of the house wrapped up?
I like the previous reader got hooked on your title it made me want to read more. You are right now is the time to buy; of course, each buyer must look at their own situation.
This is a great post, Lisa. Buying a home could be the best present one could give to themselves.
Amy, Thanks! The picture is from Microsoft; it is part of their free clipart collection that came when we purchased Microsoft Office.
Pat, Yes, but the moons do seem perfectly aligned for anyone who can afford to make a move and is so inclined.
Peggy, You are right; a home will last way longer than any other toys or gifts.
Lisa
Lisa,
The Loper Team has make a great case for home ownership in your area on Pennsylvania! I really like how you applied the national trends to your four local markets! Well done and let's hope buyers not only SHOP, SHOP, SHOP but do some buying during this Christmas Season.
Bruce, Seriously, yes buyers need to buy, not just shop!
Lisa
Lisa, great market report and hope you have entered the
December 2011 Market Reports Challenge
Lisa, this is so right on the mark! With inventories low, rates unbelievable, why would you throw money away and rent??? CALL the SCOTT LOPER TEAM today!