{"id":1066,"date":"2020-09-01T22:16:16","date_gmt":"2020-09-01T22:16:16","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=1066"},"modified":"2021-02-03T16:34:42","modified_gmt":"2021-02-03T16:34:42","slug":"not-just-price-home","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/not-just-price-home\/","title":{"rendered":"It\u2019s Not Just About the Price of the Home"},"content":{"rendered":"
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It\u2019s Not Just About the Price of the Home<\/p><\/div>\n

When most of us begin searching for a home, we naturally start by looking at the price. It\u2019s important, however, to closely consider what else impacts the purchase. It\u2019s not just the price of the house that matters, but the overall cost in the long run. Today, that\u2019s largely impacted by low\u00a0mortgage rates<\/a>. Low rates are actually making homes more affordable now than at any time since 2016, and here\u2019s why.<\/p>\n

Today\u2019s\u00a0low rates are off-setting rising home prices<\/strong>\u00a0because it\u2019s less expensive to borrow money. In essence, purchasing a home while mortgage rates are this low may save you significantly over the life of your home loan.<\/p>\n

Taking a look at the graph below with data sourced from the\u00a0National Association of Realtors<\/em>\u00a0(NAR), the higher the bars rise, the more affordable homes are. The\u00a0orange bars<\/strong>\u00a0represent the period of time when homes were most affordable, but that\u2019s also reflective of when the housing bubble burst. At that time, distressed properties, like foreclosures and short sales, dominated the market. That\u2019s a drastically different environment than what we have in the housing market now.<\/p>\n

The\u00a0green bar<\/strong>\u00a0represents today\u2019s market. It shows that homes truly are more affordable than they have been in years, and much more so than they were in the normal market that led up to the housing crash. Low mortgage rates are a big differentiator driving this\u00a0affordability<\/a>.<\/p>\n

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House Affordability Index 1990 to Today<\/p><\/div>\n

What are the experts saying about affordability?<\/strong><\/h4>\n

Experts agree that this unique moment in time is making homes incredibly affordable for buyers.<\/p>\n

Lawrence Yun,\u00a0Chief Economist<\/em>, NAR<\/a>:<\/p>\n

\u201cAlthough housing prices have consistently moved higher, when the\u00a0favorable mortgage rates<\/strong>\u00a0are factored in, an overall home purchase was more affordable in 2020\u2019s second quarter compared to one year ago.\u201d<\/em><\/p><\/blockquote>\n

Bill Banfield,\u00a0EVP of Capital Markets, Quicken Loans<\/em><\/a>:<\/em><\/p>\n

\u201cNo matter what you\u2019re looking for, this is a great time to buy since the current low interest rates can\u00a0stretch your spending power.<\/strong>\u201d<\/em><\/p><\/blockquote>\n

Mortgage News Daily<\/a>:<\/p>\n

\u201cThose shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly\u00a0$32,000 more buying power.<\/strong>\u201d<\/em>\u00a0<\/em><\/p><\/blockquote>\n

Forbes<\/a>:<\/p>\n

\u201c<\/em>Homeowners are the clear winners<\/em><\/strong>. Low mortgage rates mean the cost of owning is at historically low levels and who gains all the benefits of strong house price appreciation? Homeowners.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

When purchasing a home, it\u2019s important to think about the overall cost, not just the price of the house. Homes on your wish list may be more affordable today than you think. Let\u2019s connect to discuss how affordability plays a role in our local market, and your long-term homeownership goals.<\/p>\n

 <\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
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\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

House Affordability Finish Reading It\u2019s Not Just About the Price of the Home<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36],"tags":[82,38,15,10,18,130,27,91,52,83,25,9,49,217,42,40,63,20,12,48,13,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1066"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1066"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1066\/revisions"}],"predecessor-version":[{"id":1069,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1066\/revisions\/1069"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}