Is Now The Time For Seniors To Sell Their Houses: Part 3

I have written before (Is Now The Time For Seniors To Sell Their Houses: Part I and Part II) about my belief that the mature market should stop dreaming about what their houses were worth at the housing market’s high point. It’s not healthy and will only cause inertia. Inertia can be a paralyzing disability if it’s keeping you from doing something you know is right (like downsizing to a more worry-free lifestyle.) I know moving is never easy (less than 3% of the age and income qualified people who can afford to move to a retirement community ever make the move) and I don’t mean to trivialize the complexity of the issue. It’s just that I’ve seen what a life-improver it can be when someone moves to a better life situation (remember, I’ve helped over 20,000 make the move to a retirement community).

 

Here are a couple of sharp observations from my good friend Rob Jenkins: (Note: Rob is not a client, I just agree with his observations).

Rob Jenkins, Mortgage Expert
Rob Jenkins, Mortgage Expert

 

 

 

 

Housing market and mortgage rates better than 2000:

Quickly….would you have considered the real estate market good in the year 2000? How about 2002?  When you think back fondly on those years we can all agree that during those periods we thought they were great years for home purchases.

It is amazing that, as consumers we have the perception that 30 year fixed rates are high. According to Quotemedia.com the average 30 year fixed rate mortgage last week was 6.51%.  This is well below the average 30 year fixed rate in 2000 and 2002.  Take a look at the following chart: we have very short term memories; mortgage rates are still very low historically.  In fact, rates are actually lower than most of 2006 and 2007.  Rates have been under 7.00% since 2002. 

 

 

Also, in 2000 the median sales price of new homes (according to census.gov) was $169,000. It is currently estimated to be $233,000.  While the $233,000 median new home price is off of its all time highs, it is still a positive gain from 2000.  It is a healthy 37.86% average increase over the 8 year period.  Owning a home is still a great investment; let’s get the word out to our community.  Now is considered a great time to take advantage of some great rates and home prices.  Because historically, neither will last very long.

 

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