Recently, we've had a few homeowners ask if now is a good time to move up into a larger home. Our answer is a resounding "YES!" and here's why:
- House prices in Newtown have come down a total of 15.11% in 2007 and 2008.
- Mortgage rates are still at historically low rates
- Many sellers need to get their homes sold and there are definately "deals" out there
- There are short sales available for sale, as well as pre-foreclosure and foreclosure properties.
- Contrary to what you hear on the news, people CAN get mortgages and homes are beginning to sell again.
- If you currently have equity in your home, great credit and have outgrown your exiting your home, you should definitely consider moving up to a larger home.
- Financial experts are speculating that when the housing market recovers, home values will increase at more normal rates (1-3% per year). This translates into more built up equity in a more expensive home than in a less expensive home. Here are examples:
- A home worth $300,000 that increases in equity at 1%/year would be worth $303,000 - a gain of $3,000 in equity after one year.
- A home worth $500,000 that increases in equity at 1%/year would be worth $505,000 - a gain of $5,000 in equity after one year.
- A home worth $300,000 that increases in equity at 3%/year would be worth $309,000 - a gain of $9,000 in equity after one year.
- A home worth $500,000 that increases in equity at 3%/year would be worth $515,000 - a gain of $15,000 in equity after one year.
So, if you've been waiting for the "right time" to move up to your next home, the time has come. Contact a Realtor and get movin'.
If you have any questions or if you would like us to assist you with moving up, please feel free to email us.
Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
Cell - (203) 470-9818