Housing Prices: Past, Present, & Future

We all know housing prices are ever changing. But for most of us, we have yet to do the research on how much prices have changed in the past year and where they are likely to be in the future. Thankfully, the KCM Crew has compiled data from the NAR Existing Home Sales Report and Freddie Mac’s Primary Mortgage Market Survey to compare median prices and mortgage rates from last year, current prices and rates, and projections for next year.

Last year, the median home price was $187,800 and the 30-year fixed mortgage rate was at 3.5%. Assuming buyers paid 20% for a down payment, payments ended up around $675. Today, the median home price is $213,500. With 20% down and a 4.5% interest rate on a 30-year fixed mortgage, buyers pay approximately $865 per month. Looking to the future, the KCM Crew used projections from the Home Price Expectation Survey, which said the average home price would most likely be around $224,000 with a 5% interest rate, so buyers with a 30-year fixed rate could be paying around $960 per month. Read the entire article here.

That really puts it in perspective! Finally decided to make the move? With combined real estate experience of over 115 years, the six members of The Jan Richey Team are seasoned professionals.  Each has expert market knowledge and can guide you in the right direction during your buying and/or selling experience.

Photo courtesy of realestate.msn.com