Income Levels v. Home Prices
Economists often pay close attention to the ratio between how much local incomes have been rising and how much local real estate prices have been climbing. If real estate prices rise faster and farther than do local incomes, then it is a sure sign that local real estate is moving into a range in which it’s either difficult to afford or simply unaffordable.
Continue ReadingLeave a CommentThe Affordability Index
This is a rather strange indicator of how affordable the homes are in a given area—strange primarily because it makes assumptions that may or may not be true. Generally, the index notes the amount of income needed to purchase an area’s median-priced home in a transaction with a 20% down payment and an institutional mortgage loan for the balance of the purchase price.
Continue ReadingLeave a CommentWhen To Buy in a Buyer’s Market
In a buyers’ market, sales are obviously slower than in a sellers’ market. What constitutes a buyers’ market, after all? An abundance or over-abundance of homes on the market for sale.
Continue ReadingLeave a CommentWhy Advertise in Newspapers?
The primary way homes were marketed in the past was in the newspaper classifieds, where hundreds of brief advertisements vied for the reader’s attention, most of them failing to get much notice. But all of this has changed, largely due to the Internet.
Continue ReadingLeave a CommentYour Equity in a Second Home
One of the things we are reminded when the real estate market surprises us with a serious slowdown is that it is very good to have a reasonable amount of equity in a home, especially if we’re never certain when we may want or need to sell it.
Continue ReadingLeave a CommentAre You at Home?
Increasingly, we’ve realized that there is something magical about looking at a house that you may want to buy and make your own. When a home looks right, when it strikes you from the first moment you enter the door, your mind almost inevitably begins to imagine how your belongings, your furniture—indeed, your life—would look in this house.
Continue ReadingLeave a CommentWhen To Buy
Financial advisors in our newspapers and magazines love to write about this subject, suggesting that we buy when sellers are willing to negotiate, when interest rates are low, when others are buying, etc., etc.
Continue ReadingView Comments (1)Why Wait to Buy?
“Bottom-fishing”: a scary term often used when real estate prices have eased and seem on the verge of easing further. We don’t advise it.
Continue ReadingLeave a CommentWhy Pay a Commission?
It has generally been true that many people wonder, especially when home prices have skyrocketed, why they should pay a commission to a real estate professional or work with a mortgage professional when there are cheaper ways to buy, sell or finance a home.
Continue ReadingView Comments (1)How Long Will Your Home Last?
We don’t tend to think of houses aging to the point of being uninhabitable, but it can happen if homes are not maintained with care. The same is even truer of the appliances in our homes, without proper care they can become unusable.
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