Homebuyers may be changing the parameters of what they want in a home as mortgage rates have just reached 5%, make the cost of a home more expensive in terms of monthly mortgage payments, often $700 or more.
Far from being something that only affects Sonoma County, this increase is nationwide. Here are the numbers for a typical home sold in the United States: the median price of a home fell from $309,200 in December 2020 to $357,300. Over the same period, interest rates rose from 2.67% to 5.08% this week. With a 10% down payment, this increased the monthly payment from $1,124 to $1,742, an increase of 55%. It’s the impact that rising prices and rising rates have on new home buyers.
The silver lining of this increase is that many sellers have started lower their asking prices, as they notice that many homebuyers are less eager – or able – to purchase the home at these rates. It’s not a complete solution for many buyers, as the average borrower is now paying about 38% more than they would have paid for the same home a year ago with a monthly payment.
Some buyers have decided to stop looking altogether, while others have decided to re-evaluate what they’re looking for in a home – often smaller than originally planned or, in some cases, choosing a repairman over it. a turnkey.
One way to find a repairman is to search for homes well below the current median of $795,000. Here’s a look at 6 homes currently listed under $500,000.
Click through our gallery above to preview the latest homes listed for under $500,000