Purchasing a home in today’s market is likely the best move in Ann Arbor real estate you can make! Inventory is high, cost of money is near historic lows and the cost of the average home is lower than it has been in years!
If you are entering the Ann Arbor real estate market for the first time or are considering a move into your next home, take note that this is the time to buy. We’ve talked previously about timing the market and why that is likely a tougher thing than just jumping into the market feet first.
This time, I want to point out the numbers to you and why making a move in this “bad” market is likely in your best interest!
First Time Home buyers:
Just get into the market, find a home that you can afford! Mortgage rates are great and the amount of inventory (homes on the market) is high. This is the time to be looking for your first home. You can begin your search with Team366’s Search and Save.
Move Up Buyers:
You recognize that buying a larger home now is a sound financial move, but you’ve got a place to sell. Should you try and sell in this “bad” market when you know you will take a hit just so you can get into a larger home? It depends, but the answer is likely yes. Here are some points to consider.
A few years ago things looked like this for the move up buyer:
- Value of first home: $250,000
- Move up home value: $400,000
- Difference in larger mortgage or money invested is $150,000
Now, the market has changed the numbers a bit:
- Current value of first home: $175,000
- Move up home value: $280,000
- Difference in larger mortgage or money invested is $105,000
While the drop in the value of the first home is huge (30%) that same drop applies to the home you are purchasing. By selling and buying now, in this market, you are looking at $45,000 in savings under this scenario. If you’ve got some significant equity built up in your first home, then the numbers are even better. In fact, you could very easily be paying the same monthly on your new home, as you did on your first home!
Team366’s Listing Syndication Service: Utilizing the latest in online real estate marketing techniques and technology, Team366 has created a unique marketing system. Incorporating narrated walk through videos and an extensive syndication list, Team366 routinely generates between 450 and 1,000 links back your property. And, we take the guess work out of what the market believes your property is worth! Call today to learn more: 734.564.7465
Team366 Search and Save: Check out currently available properties, create your own search and save properties you are interested in!
Update: As soon as this went live, I found another article that tells me this is the time to buy! While the title is misleading, this article buried the biggest bit of news: 59% of those polled believe this is a great time to buy!