Wednesday, February 19, 2020

The Rise in House Prices & What it Can Mean For You

In 2019, home prices rose at a rate of 3.3%, which is a drop of 1.7% from 2018’s 5% increase. The price increase went down, but the home prices still rose. This can be a bonus for sellers who bought their homes before the prices started rising, but it can make things harder for buyers if they cannot afford the homes on the market. This temporary imbalance can mean that determined buyers have to figure out how to save enough to make their monthly mortgage payment affordable. Whether you are buying or selling, the current home prices can have a huge impact on your financial journey, so we are going to break it down and learn why.

For Buyers

If you are planning on buying a home in 2020, it will be important for you to sit down and analyze the best price for your budget. You can work through this process by submitting a home loan application on our website and letting our team of mortgage lenders at the Lake of the Ozarks assist you - or you can figure the rough estimates on your own.

This is especially essential when you are purchasing a vacation home at the Lake of the Ozarks as you will now be paying for two mortgages. Some experts suggest that you do not want to pay more than 25% of your take-home pay on a mortgage, but after you analyze your finances you can make an informed decision. The best news is that while home prices may be on the rise, home loan rates are better than they have been in years! If you find a home you love, this is a great time to secure your loan.

For Sellers

From a seller's perspective, higher home prices can mean it is a great time to sell your home. Because you want to get the best possible price out of your home, it is important to work with a real estate agent who is experienced in the Lake area as well as has experience selling homes like yours. They can use a competitive market analysis to find out what similar homes are selling for in your area and help you with your listing price.

For Homeowners

If you own a home, you may be curious about how the value of your home is doing. As the prices of homes are going up, is your home value appreciating as well? If you bought your home eight to ten years ago, there is a strong chance that you have a very nice profit tied up in your home! In fact, some studies show that people who had owned their home for four to seven years, were getting $52,000-68,900 more than they purchased them for, if they sold them last year!

The Housing Market at the Lake of the Ozarks

We have been saying this for a few months now, but if you are considering purchasing a home, NOW is the time to get it done! Home interest rates have been at incredible lows, and we do not want you to miss them. Team Lasson is ready to help you work through the home loan process. Visit our website to learn more about our mortgage company at the Lake of the Ozarks, or to fill out your application and get started! We cannot wait to see you get the home of your dreams just in time for Summer!

For Lake area news, resources and tips on financial services, please 

Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065

Direct: (573) 746-7211

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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