November 2014

There are 3 blog entries for November 2014.

Someone will always find a good reason not to buy a house. Everybody knows that there’s never a good time to move. However, these historically low rates continue to make a case for buying now instead of waiting. I will continue to blog about this because everyone that’s thought about entering the market as a buyer or seller needs to take notice to this profound economic incentive.

Although this chart portrays a monthly payment for a $200,000 mortgage (not very applicable to Marin County), it paints a nice picture of today’s affordability in comparison with recent decades.

 

See my point? If you’re a seller, these rates will create buyer demand. If you are a buyer, get off the couch and get preapproved.

 

Alex Narodny

alex@marinrealestate.net

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It’s not even Thanksgiving yet, and we are already seeing the cheesy Christmas ads. The holidays are right around the corner. So are the family dinners, packed parking lots, office cocktail parties, and forced conversations with friends you haven’t seen in 12 years. It’s easy for the home buying decision to take a back seat with all the commotion surrounding the holiday season. However, here are four reasons you should consider buying now rather than waiting for 2015:

  1. Mortgage Interest Rates are Expected to Increase – Although rates have softened lately, Freddie Mac/Fannie May and The Mortgage Bankers Association predict they will rise almost a full point by the end of the year.
  2. Values Continue to Rise – Home prices are rising every month. Over the
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While much of the eternal rent vs. own dilemma can be funneled into economic equations based on current market conditions, the only way to determine a “good investment” is through guess and check.

Economists have a long-held view that the choice to own or rent is shaped by putting assets and liquidity under a microscope and making a calculation about costs of owning vs. renting after controlling for alternative investments.

The prospective homeowner can use a complex user-cost equation that captures all these variables that influence their decision:  house price appreciation, opportunity cost of making a down payment, cost of capital adjusted after deductions, operating costs, insurance, mortgage, etc.

For prospective renters, you simply calculate

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