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Your Home May Be Worth More Than You Think

Filed in Prescott, AZ Real Estate by on February 28, 2017 0 Comments • views: 157

Home Prices in the US are back to the peak levels of 2005

 

From 2006 to 2011, home prices in the United States were in free fall. However in the past 6 years, the average home value has caught up to the 2006 highs and in some markets gone even higher. Now keep in mind each market is unique. In Prescott Arizona, for instance, our market has areas that have surpassed the 2006 high and other neighborhoods that still a ways to go to reach those market values.  What many home owners do not realize is that property values have gone up beyond our expectations. 

 

Decline in US home ownership

Aside from property value increase, some other interesting trends have been underway. Home ownership in the United States has continued to decrease from about 67% in 2009 to just under 64% today. While the number of people renting homes and apartments has grown over the same time. This presents us with some great opportunities. 1. With a growing number of renters and short supply of rental properties, the rent values have seen a sustained increase. If you are an income property owner, or are thinking about becoming one, there could not be a better time. Positive cash flow is pretty easy to work out with rentals as long as you have the right agent to help. 

Mortgage Rates are at all time lows

2. Mortgage rates remain at all time lows. Over the last 45 years the US average mortgage rates have been around 8%. Today we are around 4%. That means that for renters, it is often less expensive to buy than to rent. Also, the number of homes available for sale greatly outnumbers the rentals available in many markets such as the Prescott Arizona market. 

Home affordability at all time high

3. Finally when you look at the cost of owning a home, the historical average cost as a percentage of income is 21.6%. However today the cost is just 15.2% . That means when you compare the cost of owning a home today with our average over the last 45 years, its way more affordable thanks to very low interest rates. 

No matter if you are an income property investor or a first time home buyer, right now is an amazing time to be looking at property. The Conners team specializes in residential and multifamily home sales. Our goal is to build relationships for life. Please feel free to contact us today to find out how you can take advantage of this unique opportunity in real estate. 

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