Something I heard this week,
"Homes are more affordable now than they were a year ago."
How can that be? Prices have been going up so quickly!
Then they explained...
For this example,
we will use the Median Home Price in Henderson.
This week it is $470,000
One year ago it was $440,000
And Interest Rates this week are at 2.71%
One year ago they were 3.73 %
When we calculate $470,000 for 30 years at 2.71%
we have a payment of $1,909 / month
When we calculate $440,000 for 30 years at 3.73%
we have a payment of $2,033 / month
(assuming Taxes, Insurance and Association Fee's are all the same)Buying a median home this year will cost $124 / month LESS.
A savings of $1,488 a year.
Another Interesting Factoid I heard is that,
The Average Weekly Earnings has Risen over the past year
from $972 in Nov 2019 to $1,029 in Nov 2020
This equates to $57 more a week, $228 a month
or an additional $2,964 for the year.
All during a Pandemic...?
These are two major reasons the Housing Market is So Strong.
