Not About The Price
EVERYONE IS INTENSELY FOCUSED ON THE PRICES OF HOME WHEN THE REAL FOCUS SHOULD BE THE ABILITY TO WRITE A
CHECK FOR THE MONTHLY MORTGAGE PAYMENT.
Everyone is acutely aware that home prices have been soaring for the past year-and-ahalf. They have far exceeded the runup in values prior to the Great Recession. This has
many people on edge, wondering how values can continue to rise beyond their current record highs. In focusing just on prices, it is no wonder they fear an end to the pandemic
housing run. In analyzing the housing market and where it stands today, home prices are a critical component, yet household incomes and mortgage rates are equally important factors as well. As household incomes rise, families’ monthly paychecks rise. As interest rates drop,home buyers are looking at smaller monthly payments.
Buyers should ultimately approach the home purchasing process by taking a careful look at their family budgets. What a buyer pays should be in alignment with their budget
and monthly payment comfort level. After purchasing, buyers will be sitting down and writing a check out to the mortgage company each and every month. After closing
escrow, they will no longer care too much about how much they paid for their home. Instead, they will care about the monthly mortgage payment that is deducted from their
checking account for the next 30 years.
