October Statistics for Dane County and South Central Wisconsin

October Statistics for Dane County

I am a huge Marvel Comics fan and enjoy the lessons that can be learned from our super heroes.  Showing Super-Man blasting off of Earth's surface is how I feel about the strength of our local market.  Home sales are up for the fourth month in a row in Dane County.  Sales from October 2010 to 2011 are up 3.3%.  For the entire SCWMLS, October is up 2.1% from 2010 to 2011.  We have a strong local market compared to the national news and markets!

The year started off slower than 2010.  Mainly due to the effects of the first time buyer tax credit in 2010.  The gap is narrowing quickly and expectations from Realtors and economists is that the last two months will be very productive.

The median sale price of homes in Dane County is similar to 2010.  $206,000 (2011) vs. $205,726 (2010).  The median sales price for the SCWMLS (8 counties) is 3.8% lower than 2010.

The number of homes on the SCWMLS are declining year to year and are trending downward.  New listings are also trending downward in Dane County and SCWMLS.

I thought that this next statistic was really cool.  There are 50% of the listings that are for sale from $120,000-$300,000.  50% of the sales are happening between the price ranges of $100,000-$250,000.  This is for single family homes but the same trend is happening for condos as well.

Heading into the fourth quarter of 2011, the interest rates are still at historic rates just under 4%, homes are now more affordable then renting due to rising rents and there is a great inventory in the price range of $120,000 to $300,000 in the MLS.  The end of the year looks like it will continue the four month upward trend of increased sales and prices overall.

Have a great Thanksgiving!  We all have people and things in our lives that we can say thank you for.  Let's tell those around us how special they really are and thankful for who they are in our lives.

Is 20% down payment right for you??

Is it worth putting down 20%??

When I was reading the KMC Blog this morning, I really liked the topic of weighing your options as a consumer in the process of getting a home loan.  This is a difficult question to ask yourself if you are purchasing a home.  Right now with the current rates, every $10,000 costs roughly $50 per month.  Most of us can make $50 more a month work but might have a hard time making an additional $10,000 down payment on a new home.

These are perfect questions to ask not only your Realtor, but your lender.  Working with a trusted lender will help you understand these options to the fullest.  Depending on the type of loan you get you also may have a PMI (Private Mortgage Insurance).  For more information on PMI and the rules, please check out the FTC's Site: Click Here

Also, speak with your tax consultant about the amount of deduction you will be able to have with a mortgage and PMI.  

This past week I was at the National Association of Realtors in Anaheim, CA I went to hear Chief Economist Dr. Lawrence Yun speak.  The big take away from that report was that rates will go up as inflation increase.  Every economist and money manager will tell all of us the same message....inflation increases are inevitable over the next few years.  They won't be extraordinary, but they don't have to be to affect the mortgage rates.  His prediction is that rates will increase .5% to 1% each year for the next 3-4 years.  That means that rates will most likely be around 4.5%-5% next year, 5% -5.5% in 2013, 5.5%-6% in 2014.

Here is what that means in real dollars.  If you have a $200,000 mortgage that you are looking to have when purchasing a home, a mortgage with 20% down and 4% interest rate will cost you $764 a month with P&I( taxes not included in any of these calculations).  At 5% this is $859 a month.  This is $95 more per month, $1140 more a year and $34,200 more over 30 years!!!  The difference between 4% and 6% is even greater.  A month it is $195 more a month, $2340 a year and $70,200 in 30 years!!

Showing you these numbers is not to scare anyone...I hope that you are not after seeing this information.  I want to make sure that everyone that is looking to purchase a home is well informed and does what is best for their personal economy.

With Thanksgiving around the corner, it is important to remember what we are thankful for and all that we have and all of those people that are in our lives.  Happy Thanksgiving!

What's Your Credit Like and How Can It Affect Your Home Purchasing Power?

If you plan to use a mortgage for your next home purchase, you’ll want to keep your credit scores 

 as high as possible. Credit scores play an out-sized role in determining for which mortgage product you’ll qualify, and to which rate you’ll be assigned by your lender.  The higher your credit score, the lower your mortgage rate will be.

 

The article in Trulia this week was great at explaining the reason's why this is so important.

Check it out on the following link: Credit Scores

What ways would you suggest to help in raising your credit scores?  I would love to here from you!  Happy House Hunting!