Smart Money, In the Suburbs

Hello, and welcome to a new era here in housing. We’re finally back to a time when you just might luck out and get a great deal buying a home.

For the last year or so, cash was king. To win in a bidding war (virtually every home had multiple offers) you needed to offer big bucks (avg ~$50,000 in our market) past the list price. Today, with interest rates climbing – some ‘would-be’ buyers are back to casually surfing Zillow, and not actually writing offers (for now). There’s a good chance you’re the ONLY buyer for that big, brick beauty down the street. (Hmmm, I smell a deal…) So let’s think smart with our hard-earned $$$. How can I use this new leverage as a buyer? How much space do I need? Where should I look? Is that house I saw in Brookhaven really worth it? I mean, we all work remote now…right? No such thing as a commute…so let’s check the stats.

 

OTP vs ITP, the winner is clear…those city folk are only gaining equity at 14% and that 3,000 square foot home just cost them nearly a million bucks. Out here in the ‘burbs, we’re living large…on the cheap. Gaining equity well over 20%, and a similar sized home costs 70% of the price. So again, let’s think smart with our money.

Here are the facts: demand is down and rates are up. You don’t need to offer $50k above list price. Rates are about two percent higher than they were 6 months ago. Take away that extra $50k in “bidding war era” home price, and add 2% to the interest rate…you guessed it. It’s a wash when it comes to your monthly housing payment. It’s still a great time to buy.Money talks, and I’d love to talk money with you. Come see us OTP and we’ll help you see what you can comfortably afford.

Russ Macklin, Senior Loan Officer w/ Supreme Lending Southeast
404-661-1405
russ.macklin@supremelending.com

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