{"id":517,"date":"2020-02-20T14:39:36","date_gmt":"2020-02-20T14:39:36","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=517"},"modified":"2020-02-20T14:39:38","modified_gmt":"2020-02-20T14:39:38","slug":"the-1-misconception-in-the-homebuying-process","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/the-1-misconception-in-the-homebuying-process\/","title":{"rendered":"The #1 Misconception in the Homebuying Process"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"750\" height=\"410\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2020\/02\/20200220-KCM-Share.jpg\" alt=\"\" class=\"wp-image-518\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2020\/02\/20200220-KCM-Share.jpg 750w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2020\/02\/20200220-KCM-Share-300x164.jpg 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption>Financial goals,saving money<\/figcaption><\/figure>\n\n\n\n<p>After over a year of moderating home prices, it appears home value appreciation is about to reaccelerate. Skylar Olsen,&nbsp;<em>Director of Economic Research<\/em>&nbsp;at&nbsp;<em>Zillow<\/em>, explained in a&nbsp;<a href=\"http:\/\/zillow.mediaroom.com\/index.php?s=28775&amp;item=137570\" target=\"_blank\" rel=\"noreferrer noopener\">recent article<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><em>&nbsp;\u201cA year ago, a combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise. That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains. As a natural reaction, the recent slowdown in home values looks like it\u2019s set to reverse back.\u201d<\/em><\/p><\/blockquote>\n\n\n\n<p><em>CoreLogic<\/em>, in their&nbsp;<a href=\"https:\/\/www.corelogic.com\/downloadable-docs\/marketpulse\/17-mktplse-0120-01-the-marketpulse-vol-9-issue-1-january-2020-screen.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">January 2020 Market Pulse Report<\/a>, agrees with Olsen, projecting home value appreciation in all fifty states this year. Here\u2019s the breakdown:<\/p>\n\n\n\n<ul><li>21 states appreciating 5% or more<\/li><li>26 states appreciating between 3-5%<\/li><li>Only 3 states appreciating less than 3%<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Misconception<\/strong><\/h4>\n\n\n\n<p>Many believe when real estate values are increasing, owning a home becomes less affordable. That misconception is not necessarily true.<\/p>\n\n\n\n<p>In most cases, homes are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by almost a full percentage point since this time last year.<\/p>\n\n\n\n<p>Another major piece of the equation is a buyer\u2019s income. The median family income has risen by 5% over the last year, contributing to the affordability factor.<\/p>\n\n\n\n<p><em>Black Knight<\/em>, in their latest&nbsp;<a href=\"https:\/\/www.blackknightinc.com\/black-knights-december-2019-mortgage-monitor-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mortgage Monitor<\/a>, addressed this exact issue:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><em>&nbsp;\u201cDespite the average home price increasing by nearly $13,000 from just over a year ago, the monthly mortgage payment required to buy that same home has actually dropped by 10% over that same span due to falling interest rates\u2026<\/em><\/p><p><em>Put another way, prospective homebuyers can now purchase a $48K more expensive home than a year ago while still paying the same in principal and interest, a 16% increase in buying power.\u201d<\/em><\/p><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bottom Line<\/strong><\/h3>\n\n\n\n<p>If you\u2019re thinking about purchasing a home, realize that homes are still affordable even though prices are increasing. As the&nbsp;<em>Black Knight<\/em>&nbsp;report concluded:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><em>\u201cEven with home price growth accelerating, today\u2019s low-interest-rate environment has made home affordability the best it\u2019s been since early 2018.\u201d<\/em><\/p><\/blockquote>\n\n\n\n<p>Contact us:<br><a href=\"https:\/\/phphouses.com\/\">PHP Houses<\/a><br>142 W Lakeview Ave<br>Unit 1030<br>Lake Mary, FL 32746<br>Ph:&nbsp;(407) 519-0719<br>Fax:&nbsp;(407) 205-1951<br>email:&nbsp;<a href=\"https:\/\/phphouses.com\/contact.html\">info@phphouses.com<\/a><\/p>\n\n\n\n<p>Let\u2019s Connect:<br><a href=\"https:\/\/www.facebook.com\/WeBuyHousesCentralFlorida\/\">Facebook<\/a><br><a href=\"https:\/\/www.linkedin.com\/in\/walter-diloreto-71b2422a\/\">Linkedin<\/a><br><a href=\"https:\/\/twitter.com\/WalterDiLoreto\">Twitter<\/a><br><a href=\"https:\/\/www.instagram.com\/wdiloreto\/\">Instagram<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Homebuying Process <a class=\"continue\" href=\"https:\/\/phphouses.com\/blog\/the-1-misconception-in-the-homebuying-process\/\">Finish Reading<span> The #1 Misconception in the Homebuying Process<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":518,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36],"tags":[59,18,27,91,57,52,49,42,40,116,115,20,48,13,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/517"}],"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=517"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/517\/revisions"}],"predecessor-version":[{"id":519,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/517\/revisions\/519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media\/518"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}