Real Estate for 25% off

The going rate for 30 year fixed conventional mortgages right now is less than 5%. Met Life even quoted a rate of 4.5%.

With interest rates this low, it’s like a 25% off sale on real estate.

Consider this

At 6.5% interest, (a historically low rate for mortgage loans) the Principal and Interest payment on a 30 year fixed loan with 20% down would be $1011 a month on for a $200,000 house.

At 4.5% interest (possible interest rate Today), the PI payment on a $250,000 home would be $1013 a month with 20% down.

Now in this scenario the property taxes and insurance would likely be less for the $200,000 home, and the down payment on the $250,000 house would have to be an additional $10,000, but the point is that home prices are incredibly affordable right now. Also consider that a current Utah Home prices in the $250,0000 plus range were substantially more a year ago. For the normal payment of a $200,000 house, you can buy what would have been a $300,000 house a year ago (and what will be again in a year or two).

If you are just looking to live with in your means, and don’t necessarily want a nicer home for the same cost, then these low interest rates can also just save you a load of money. That $200,000 home at 4.5% interest would save you $200 each month over the 6.5% interest rate.

It is a GREAT time to buy.…

October Numbers for Salt Lake Real Estate

October Home Sales in Salt Lake were down more than 20% compared to October of 2007 when 1,023 residential properties were sold. The average price of homes sold was also down in Salt Lake County by 2.8%, at $264,720. The median price of homes sold in the last month was $234,000.

There are currently 8,372 residential homes for sale in Salt Lake County. The median price of these listings is $284,400 and average list price at $385,217. List prices of homes is still substantially higher than what homes are selling for. The number of total active listings has slightly dropped but the ratio of homes sold per month to active listings is decreasing. At Octobers home sales pace, Salt Lake County has more than a years worth of inventory.…