Housing inventory is at an all time low. There are actually 39% fewer homes on the market this year as there were last year. With the supply being low and the demand being high, it is driving prices up on the homes that are on the market. This is great news for a seller, but can be frustrating as a buyer. However, buyers should keep in mind that the price of a house is not as important as the cost of a house. So what does that mean exactly?
The price of the home is the actual price. The cost of a home is different. There are several factors which get figured in to the cost of the home. The 2 main factors are the actual price of the home and the interest rate of the loan. With the house prices going up, that does not mean that your cost is going up. That is because interest rates are at an all time low.
The cost of a home is more important because that is the amount you will actually pay. But don’t fret higher prices in the housing market DOES NOT mean a higher cost. That is because the interest rate is at a historic low. Don’t let all this confuse you, call/text me today at 931-237-1417 to discuss this further.