“Home prices continue their downward spiral” – shouted one newscaster with nervous excitement.
“Mortgage Rates rise again this week…”, stated another newscast.
Uncertainty. That’s what all the newscasters convey about housing.
So, let’s cut through a bit of the uncertainty, and specifically for the would-be first time home buyer in the Atlanta metro market.
It is true to home prices seem to be dropping or ready for another drop of a certain percent. But not all homes. They say all real estate is local, which is true, but it is also segmented according to price points.
The lower end of the market – that which most first time home buyers look at – has stabilized in nearly all Atlanta metro counties and neighborhoods. Last Fall we were beginning to see the prices in that first time home buyer range rise somewhat. Now, over the Winter months, they have plateaued again; and at very affordable levels. But, now mortgage rates are beginning to rise as well. And that further affects affordability of homes.
Let’s take the average rent that an individual or newly married couple pays in Atlanta. Without begin scientific, but rather based on my experience, most rents range from $800-$1200 per month in metro Atlanta.
So, let’s go with the high end, say a young couple with one small child living in a 2 bedroom apartment paying $1200/mo in rent.
Now, the child is growing and they want both a good school district – thinking ahead – and a yard to play in in a safe neighborhood. That couple can buy a home for $160,000 with 3.5% down; or a Georgia HUD home for just $100 down payment, and this is what their payment would look like:
Yes, all in, their payment would be less than their current rent, even including taxes and insurance. And, assuming the couple makes a combined income of, say, $70,000 and were in the 25% income tax bracket, then the new payment minus the tax savings would be just $1,114/per month.
And, they got the yard and the pride of owning their own home.
Does this sound like you? Then perhaps this is the year to buy your own home. Call me, and I will run each of these numbers specifically for your circumstances.