Today we’ve got a quick update for buyers in the real estate market. The January numbers are in and I’m excited to share them with you.
The average interest rate rose to 4.64% at the end of 2018, which is up 0.69% from a year ago. For buyers that purchase a home at the median sale price of $260,000, that’s about $100 more on your monthly mortgage payment from last year.
Buyers averaged 1,845 sq ft. at this price, which is nearly 100 square feet smaller than the average from a year ago.
Renting may not be a suitable alternative anymore. Single-family homes appreciated by an average of 8.1% and single-family lease payments increased by about 8.6%, as well. Buying is still a better option over renting, even if it’s just to stabilize your monthly housing expenses.
Home prices will continue to rise in the first half of 2019, but at a slower rate than in years past. You might see a little more negotiation on the seller’s behalf for closing costs, concessions, etc. This is good news for buyers overall.
If you’re looking to buy a home here in the Phoenix area, we are the only call you’ll ever need to make. If you have any questions for me in the meantime, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.