Further Proof This Isn’t a Housing Bubble

Further Proof This Isn’t a Housing Bubble | Simplifying The Market

Two weeks ago, we posted a blog which explained that current increases in home prices were the result of the well-known concept of supply & demand and should not lead to conversations of a new housing bubble. Today, we want to look at home prices as compared to current incomes.

Here is a graph showing the monthly mortgage payment on a median priced home in the U.S. over the last 25 years:

Further Proof This Isn’t a Housing Bubble | Simplifying The Market

 

Mortgage payments are currently well below the historic average over that time period. Purchasers are not overextending themselves to buy a home like they did on the run-up to the housing crash.

Lawrence Yun, the Chief Economist at the National Association of Realtors, recently explained in a Forbes article:

“Even though home prices are climbing far above people’s income, exceptionally low mortgage rates have permitted people to buy a home without overstretching their budget. For someone making a 20% down payment, the monthly mortgage payment at today’s mortgage rates would take up 15% of a person’s gross income. During the bubble years, it was reaching 25% of income. The long-term historical average is around 20%. Therefore, a middle-income household does not need to overstretch their budget much if at all to buy a typical home.”

Bottom Line

Due to low interest rates, demand for housing has dramatically increased. This has caused a jump in home prices. However, low interest rates have also allowed the monthly cost of buying a home to remain well below historic norms. We are in a strong housing market, not a housing bubble.

Inventory is the issue here – No bubble here! Would you like to know more?? Contact me with your questions or concerns about today’s market. My clients are educated before they make life changing decisions – not educated by them!

I believe every buyer and seller should have the information necessary to make their own qualified decisions… I provide information, advice, guidance, and follow-up…. Let’s work together and make your REALTY dreams a REALITY!

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Five Maintenance Resolutions for Your Home

Five Maintenance Resolutions for Your Home

 

 

We may be a little removed from New Year’s Day, but it’s not too late to make some new resolutions for your home.

 

 

  1. Start a home repair slush fund: Things in your home are going to break and need to fixed. It’s just a fact that comes with home ownership. Rather than letting expensive repairs take you by surprise, start planning for them. Set aside some money each month that you can eventually draw from when an appliance breaks or unexpected.
  2. Inspect your fireplace: Even if you have a gas fireplace, you should still inspect the valves and ceramic logs yearly to ensure that everything is operating safely and correctly. If you have wood fireplace, hire a certified chimney sweep to do the job.
  3. Maintain your garage door: Garage doors are big and heavy, and that puts a lot of stress on the hinges and tracks that are used to open and close the door several times a day. A regularly scheduled $50 inspection could save you hundreds or thousands in the long run. Regularly applying a silicon spray to the tracks will also eliminate squeaks & help the gears to run smoother – making the parts last longer!
  4. Tune up your furnace: Regular furnace inspections will help identify minor problems before they turn into major ones. Having this done off-season will help you avoid the rush of appointments in the fall. Also, set reminders to replace your furnace filter.
  5. Clean your coils: Image result for refrigerator coilsThe No. 1 refrigerator maintenance task should be cleaning the condenser coils. They can get clogged with hair and dust, reducing your fridge’s efficiency. Have you cleaned yours lately? You can hire a professional to do it, but it’s also an easy do-it-yourself job. Be very careful with this as there are delicate wires and fans running under there! Take time and care when cleaning these coils. Use your vacuum and a long narrow brush gently cleaning the parts as you go. Fans are usually open, so take care that you don’t hit the fan when it running. When you take your time this simple step can improve the life of your refrigerator by years!

 


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Location, charm, affordability. Built to last, this solid 3 bedroom ranch w/ large finished bonus room has all you need if you’re just starting out or preparing to down-size! Set in a great neighborhood, this quaint & cheery home is situated on a spectacular level, wooded .65 acre lot! Bonus room expands living space to over 1100 sq ft. Walk up partially finished attic allows for tons of extra storage and a full basement is bursting with possibilities – and yes, the pool table is included! Newer replacement windows (+/- 10 yrs), central air, gas heat & H/W, attached garage, and hardwood floors through most. Just minutes from Mass Pike, WSU, Stanley Park, shopping and amenities. Easy access to all major MA cities as well as NY and CT. Attractively priced below assessed value. Plenty of space to entertain & expand inside and out- A must see!

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