REAL ESTATE ERIE
Crunching Numbers
While the good news may be that the housing market is on
the upswing, the not-so-great news is that interest rates are too.
According to bankrate.com, the interest rate for a 30-year fixedrate mortgage on November 20, 2013, was 4.30; it was 4.50
on January 29, 2014. The interest rate on a 15-year fixed-rate
mortgage November 27, 2013, was 3.47, but rose to 3.56 on
January 29, 2014.
And, because of new mortgage laws put in place after the
nation’s foreclosure crisis a few years ago, mortgages are harder
than ever to get, with credit scores and debt-to-income ratios
being closely scrutinized.
While it’s a common belief that if interest rates rise, housing
prices fall to make the house more affordable, that’s simply
not true. In fact, rising interest rates often reflect a stronger
economy.
So, while there is no direct correlation between interest
rates and home prices, long-term rate fluctuations can have an
effect on the volume of home sales, according to the National
Association of Realtors. The association says that higher interest
rates can have a negative impact on home sales, though prices
can move according to the relative supply and demand and have
generally increased in declining sales markets.
The good news for potential buyers is that there are a number
of products on the market designed to accommodate different
types of financial situations, so it pays to do some research and
educate yourself on what might be available to you.
Local Living
According to www.trulia.com, in Erie, the average price
per square foot was $78, a decrease compared to the same
timeframe last year. The median sale price for a home from
the period of October 2013 to January 2014 was $98,500,
which is based on the sale of 218 homes. This is a 14-percent
price decrease compared to the same period of time from the
previous year. In addition, the number of home sales decreased
by more than 11 percent.
House Hunting: There’s an
App for That
In today’s society, we rely on smartphones for just about
everything – for talking and texting, updating our status on
Facebook, taking pictures of the kids’ latest adventures and
pinning new recipes on Pinterest. So, it seems only fitting
that we begin our search for a house with the help of our
smartphone too.
According to www.appadvice.com, there are many free and
low-cost apps that will help you find the home or apartment of
your dreams, all with just a click of a button, and do practically
everything for you except sign the papers.
Finding the Right Home in the
Right Neighborhood
Realtor.com – This app covers it all, from rental listings to
homes for sale and employs all of the standard filters that a
potential buyer or renter would want and use. The disadvantage
to using this app is that it only includes listings by agents, so you
will not find many, if any, listings by owners. The app’s bonus,
however, is that users can “draw” their desired search area, and
the app is constantly being updated.
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