by Matt Keating
Phil Hotle, a Realtor with RE/MAX At The Crossing, is excited that quality, fairly-priced homes are selling fast within a few days in today’s market.
“So far this year, the inventory of homes for sale was at a 3.5-month supply,” Hotle said. “It’s still well below the 6.0-month supply, which is considered a healthy balance between buyers and sellers. The good news is that inventory is three percent higher than a year ago.
Hotle noted it’s not unusual to see homes sell for over their list price these days, all because of low inventory and high demand. “We expect these market conditions to continue until the pace of new home construction picks up, or more homes come on the market.”
It’s important to keep in mind that employment and wages remain key to a healthy market as well.
“The cost of a home is determined by three major components: price, mortgage interest rate and wages,” Hotle said. “Even though home prices are higher than before, wages have risen as well. The most important component in the cost equation – the mortgage rate – is dramatically lower than it was in the 1970’s, 1980’s, 1990’s and 2000’s. It’s currently around 4.3 percent.”
Hotle added that the big question is “Are consumers paying a greater percentage of their income towards their monthly mortgage payment today than previous generations? Surprisingly, the answer is no. Historically, Americans have paid just over 21 percent of their income toward their monthly mortgage payment. Today, they are paying 17.4 percent of their income toward their mortgage payment.”
If you are buying or selling and want to make the most of the current real estate market, contact Phil Hotle at 317-919-8504 or firstname.lastname@example.org.