House Too Small for Growing Family? Move on up Now & Save Thousands

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Today, we're here with the October edition of the market report. We have some incredible insights to share with you this month.

First off, existing home prices are up year-over-year in every single region of the U.S. Whenever we have a strong housing market, the doomsayers always jump in and start talking about another housing bubble.

We have been seeing too many of those headlines lately. However, the only states whose current price levels are above the peak in 2006 are the states whose prices stayed level compared to the rest of the country. We are not worried about another housing bubble looming ahead, so ignore those doomsayers.

Now, let's talk about home equity and the move-up buyer. There is a whole segment of homeowners right now who don't realize that they have enough equity to move up. Interest rates are at historic lows and prices are reasonable, but these homeowners just don't realize that they are able to buy the house of their dreams.

The Fannie Mae report shows that 23% of Americans believe they have negative equity in their home, when in reality, only 9% of homeowners have negative equity. Some people think they have to bring cash to the table, and they don't!

In addition, only 37% of Americans believe they have more than 20% equity in their home, when actually, 69% of homeowners have over 20% equity! That means 32% of those homeowners are just sitting on enough equity to move into the home of their dreams without even realizing it!

Also, people who are waiting to put 20% down either don't know that there are lower down payment loans available, or they want to avoid PMI payments. Let's say you're buying a $200,000 house. If you put 5% down, you will end up paying $232.75 more per month than if you put 20% down. However, as home rates continue to appreciate, waiting to save that 20% down payment could actually cost you more.

Waiting a year to have that 20% down payment may not be the best option for you. In addition, interest rates will go up, making homes more expensive. Now is the time to upgrade and move into your dream home!


If you have any questions, give me a call or send me an email. I would be happy to help you!