Residential sales are up 13% from 2009. Median home sales price is up 11% from 2009. So, yes, really, 2010 was a good real estate market in Midland.
Currently, interest rates are still fluctuating around 5% for a 30 year loan. The recent rise in those rates from around 4.25% has spurred a recent rash of residential home sales. The “threat” of rates rising to 5.5% or even 6%, is enough to get buyers moving. (As a reminder, in early 2000, interest rates were around 8.25%. 6% hardly seems like a drastic rise in rates!)
What buyers should know: Our market likely has made the turn. Prices likely will not drop any further. If you are waiting to purchase a home, waiting much longer means watching interest rates grow higher, and prices will slowly begin to increase.
What sellers should know: The home market has begun to recover. However, the VALUE of your home will not instantly return to pre-recession prices. The full recovery will take time. But, those interest rates are looking very attractive to buyers. And not only will it help those sitting on the fence make the decision to jump into home ownership, it will also benefit you when you purchase your next home.
If you are considering stepping up to a larger home, consider the math. A 30 year mortgage on a $250,000 home at 5% interest is over $200 less per month than financing at a 7% interest rate. This reflects in a savings of $2400 per year. Assuming home owners remain in their home for an average of 5 years, you just saved yourself $12,000.
2010 was good for Midland residential sales. And 2011 brings a lot of promise to our current market.