We were fortunate enough to have Ron Peltier speak to us in Overland Park yesterday morning regarding our nation's real estate pulse.
Ron is the hand-picked CEO of HomeServices of America (which owns Reece & Nichols) which is owned by Warren Buffet.
His 2 Points were simple:
For buyers: Home affordability is the lowest its been in decades with the correction of market pricing that we have endured over the past 5 years in conjunction with interest rates below 4.0%, which is an all time low. If you continue to wait "for the bottom" you will shortly become the gambler that wished he/she would have invested when rates were below 4.0%.
For sellers: Our inventory 5 years ago was at just over 4 million listings nationwide. We are currently just over 2 million listings nationwide, yet our country's population has not stopped growing. We will soon have a shortage of quality listings for buyer's to choose from. If you intend to sell sometime in the next 5 years, now is the time to capitalize on the serious, qualified buyers of 2012 so that you can also take advantage of the all time low interest rates. The savings you will accomplish in buying with these rates will outweigh the equity you have lost over the last 5 years in your current home.
A 1.0% increase in mortgage interest rates affect your monthly payment significantly. For example on a $150,000 mortgage at 3.875%, the principle & interest monthly payment is $705, where as at 4.875%, the payment is $793. This is an $88 difference/month (OR $31,845 over the course of a 30 year note).
Please call or email me if you want to talk further about Ron's message to the agents in charge of moving real estate across our country.