January 2020 Real Estate Market Update
A buyer’s purchasing power is increasing across the nation. That’s great for buyers because it means it’s easier to purchase a home, and it’s also great for sellers because it means buyers can qualify for more money. Hi, I’m Dave Bulava. Recently, First American finished a report showing that home prices are up by 5.7%, which would have a negative effect on buyers’ purchasing power of roughly $21,300. However, mortgage rates are down .85%, which actually means a buyer’s purchasing power could go up by $40,200. Also, wages are up by 1.5%. So, if you take all of these numbers into consideration, that means a buyer’s purchasing power is actually up by about $24,500. This is great news, but some people are still feeling a little nervous about buying or selling because of all the talk of the recession. While we know that a recession is coming, check out this study from Porch.com which shows that Americans choose real estate as the safest investment, even over a savings account, gold, stocks, and bonds. And don’t forget, rental prices continue to go up and owning a house has substantial tax benefits. So, reach out to me and I can help you sell your home or help you buy your dream home. Thank you for taking the time to watch this video. I’m Dave Bulava, and make it a great home-selling and buying-day.