Cooling Down! The Weather or the Market?
First, lets understand what is happening with our overall market and housing prime rates, as that is a major factor in today’s real estate market… nationwide! A 1% change in housing prime rates can have an impact on the cost of financing a $350,000 house. Let’s break it down:
If the prime rate increases by 1%, it means that borrowing costs for mortgages may go up. In this case, it could result in higher interest rates on home loans.
For example, if the current interest rate on a $350,000 mortgage is 4% and the prime rate increases by 1%, the new interest rate could be 5%. This change in interest rate affects the monthly mortgage payment.
To calculate the impact, we would need to consider the loan term. Let’s assume a 30-year fixed rate mortgage.
At 4% interest rate, the monthly mortgage payment would be around $1,670. However, with a 1% increase in interest rate to 5%, the monthly payment would rise to approximately $1,880.
So, this 1% change in housing prime rates could result in a roughly $210 increase in the monthly mortgage payment for a $350,000 house.
It’s essential to note that these calculations are estimates, and actual rates may vary based on market conditions and individual lender terms. As a real estate agent, it’s crucial to stay informed about changes in housing prime rates to advise clients accordingly.
So What Does THAT Mean?
When it comes to selling a house at a higher than market price, it’s important to consider the cost of ownership. Let’s break it down for a $350,000 home.
First, there are the ongoing expenses like property taxes, homeowners insurance, and utilities. These costs can vary depending on your location and specific circumstances, but on average, homeowners spend around 1-2% of the home’s value annually. So for a $350,000 home, you can estimate spending around $3,500-$7,000 per year.
Additionally, there might be maintenance and repair expenses. Regular upkeep, such as landscaping, HVAC servicing, and minor repairs, can cost around 1% of the home’s value each year. That would be approximately $3,500 per year for a $350,000 home.
Lastly, if you’re trying to sell at a higher price, it’s essential to consider the opportunity cost. The longer your home stays on the market, the more you’re spending on mortgage payments, property taxes, and maintenance costs while not generating income from the sale.
Remember, these are just rough estimates, and actual costs may vary based on several factors. It’s always a good idea to consult with a real estate professional who can provide more accurate information tailored to your specific situation.
How About Some Real Data?
If we take a look at the past three years, we can see that the property values on the Bay County area have drastically risen and have started to balance out over the course of the past year.
Now lets take a look at closed sales over the past 3 years…
All of this has been possible due to the listing activity found below over the course of the past 3 years…
New Listings? Such As?
Now you are speaking our language! We have listings all over Bay County and South Walton county! Whether you are looking for a permanent resident, a vacation investment rental, or something on the extreme side of luxury… we have you covered! Visit any of our geographically tuned websites and start your own custom search, or contact one of our experienced real estate agents for a more personal touch when it comes to finding the PERFECT PROPERTY!