Posted On: August 14th, 2020 5:37AM
Hard to believe but homes are more affordale now than they've been in years. What? Don't believe me. I know. That statement sounds a bit preposterous, but bear with me, and try to think in terms of purchasing power - not price tag.
Yes, home prices have risen sharply in the past few months. In fact. Home prices have risen for the past eight years straight. But if you just look at the price tag you're not "doing the math". Home prices today are UP, but interest rates are down. WAY DOWN. Lower interest rates equate to more purchasing power. According to data and analytics leader Black Knight, buyers today can afford on average $32,000 more home than they could last year. And California home prices are the most affordable they have been since January 2017.
So don't let rising home prices scare you out of the market, or force you to delay your home search and possibly miss out on today's great rates. Do the math. You'll see that with the incredibly low interest rates available today, you just may have way more purchasing power than you think.