Election Affection

What are you seeing in our current market, and how the housing market will be affected by our upcoming primary election?

As we’ve seen in the past, interest rates will likely rise after the election this year, no matter which party is instated. Right now, the housing market is a buyer’s paradise. In virtually every major city in the United States, it’s now less expensive to buy a home than rent one. I quote, “Washington and the housing market are never far apart. Experts ranging from real estate professionals to the members of the Federal Reserve have reported that the state of the nation’s economic recovery relies heavily on a housing recovery.”

As you’ve been reporting, Albuquerque seems to be experiencing positive momentum.

We are experiencing positive momentum and I predict that we will continue that positive trend, with activity slowing after the election. In election years, we don’t typically see as intense of a seasonal slowdown until the dust settles. November, December, and January will be slower, however it is still a great time to sell as there is less competition during these months.

How big of an impact do interest rates play?

A raise in interest rates affects affordability; so if you wait, you may spend the same money for less house. Here are some surprising numbers: at today’s rates of 3.5% on a $250,000 mortgage, your principal and interest would only be $1,122. If rates increase by only ½ of a percent, that payment is $1,193, and a 1% increase to 4.5%, which is still low, would be $1,266. That is $144 more than today’s cost based on only a 1% increase, not to mention the long-term cost of a higher interest rate, and the equity building advantage of a lower rate.

3.5% interest is definitely a reason to buy now!

Bingo! Now is the perfect time to look at obtaining your dream home!

82 Villacitos Rd Tijera