Company Logo
Contact us: 563.441.1776
SIGN UP Sign In
Company Logo
Ruhl&Ruhl REALTORS

Subscribe and receive email notifications of new blog posts.




rss logo RSS Feed
Buying a Home | 87 Posts
Career in Real Estate | 7 Posts
Community Events & Activities | 92 Posts
Company Events | 19 Posts
COVID-19 | 4 Posts
Facts and Trends | 17 Posts
Farm and Land | 19 Posts
Featured Properties | 14 Posts
Home Price Appreciation | 18 Posts
Home Tips & Tricks | 21 Posts
Homeownership | 20 Posts
Market Updates | 47 Posts
Mortgage Rates | 3 Posts
NAR Survey | 4 Posts
Nelson Brothers | 2 Posts
New Construction | 17 Posts
Other Related News | 91 Posts
Parade of Homes | 11 Posts
Power Broker Survey | 1 Posts
Press Releases & Interviews | 46 Posts
Quad Cities | 3 Posts
Recognition | 44 Posts
Ruhl Commercial | 4 Posts
Ruhl Mortgage | 30 Posts
Selling a Home | 61 Posts
Why Realtors? | 5 Posts
house improvements window treatments winter preparation holiday declutter owning a home home buyers home sellers inventory mortgage rates company events toys for tots inspections real estate specialist realtor using a realtor farm and land farmland land values selling farm land home buying home selling real estate trends home price appreciation residential real estate sales volume best year ever commercial real estate facts and trends iowa brokerage iowa real estate largest independently owned eastern iowa eastern iowa real estate home appreciation buying a home loan approval mortgage mortgages preapproval interest rates costs involved home improvements taxes Brokerage Rankings Real Estate Ranking RealTrends500 Top Independent Dubuque Community CNBC homeownership house appreciation housing market inflation midwest real estate sellers market worldwide exchange economics house appreciate house price percent change Amana Colonies Iowa City IA Iowa City Shopping Shop Local University of Iowa Cedar Rapids IA Cedar Rapids Community Events Corridor Community Events Czech Village NewBo The District Ruhl Mortgage Buyers Market Homebyers Housing inventory Real Estate Clinton Community Clinton Restaurants Fulton IL Clinton IA Apple Picking Burlington IA Dubuque IA Galena Muscatine IA Pumpkin Patches Quad Cities cleaning tips spring prep building a home new construction Bettendorf IA Davenport IA Fall Activities Farms Moline IL Orchards Silvis Local Businesses Outdoors Things to Do For Buyers Home-Buying Tips Iowa Quad Cities Illinois Quad Cities Community Rock Island Home-Selling Tips For Sellers DeWitt, IA Home Improvement Restaurants Parks Recreation Iowa Mutual Lofts Apartment Living Moving Relocating Food & Drink Home Maintenance Homeowner Tips For Owners Local Attractions Dubuque Area Holidays Shopping Remodeling Staging East Moline Coal Valley IL builders new construction homes Milan Financing First-Time Buyers New Bohemia District (Newbo) Northwest Quadrant - Cedar Rapids Northeast Quadrant - Cedar Rapids Clinton Area
English
March
1

March 1st, 2011 by
There is a very famous saying which asserts "Sell High, Buy Low". It is obviously great advice no matter what the investment. Below is a graph showing the cycle of investments. It shows the points of maximum risk and maximum opportunity when purchasing. We want to sell high (point of maximum risk) and buy low (point of maximum opportunity). The challenge is how to determine when we have hit bottom if you are a purchaser. The only time you can guarantee a bottom is after you pass it.

 

However, there is more and more evidence that the COST of a home has in fact hit bottom. Notice we have used the word COST. Unless you are an all cash buyer, you must take into consideration the expense of financing a property to determine the true cost of purchasing the home. Interest rates have increased over the last quarter; and the rise in rates has counteracted any fall in prices. Let's look at an example: Let's say you were going to take out a $200,000 30-year-fixed-rate mortgage in November of 2010. At that time, interest rates were 4.17% (as per Freddie Mac). Your principle and interest payment would have come to $974.54. According to the most recent report from Case Shiller house prices fell 3.9% in the 4th quarter of 2010. The most recent report from the Federal Housing Finance Agency shows a 0.8% fall in prices. Let's use the larger percentage decrease: 3.9%. For the sake of keeping the math simple, we will now say you can get the same house with a $192,000 mortgage (4% discount from November price). Interest rates are now 4.95% (as per Freddie Mac). Your principle and interest payment would now be $1,067.54. By waiting to pay less for the PRICE of the house, the COST increased $93 a month. That adds up to $1,116 a year and over $33,000 over the life of the loan. We realize that there are other things to consider (ex. the mortgage tax deduction, etc.). This example is just a simple way to show that there is a difference between COST and PRICE. Bottom Line If you want to buy low, buy now. It appears COST has hit its lowest point. Keep checking RuhlHomes.com for the most up to date information on the real estate market! Some information and statistics provided by: KCM Blog Mais qu'est-ce qui vous ne faire une source de jeu est très simple. Au début vous pourrez pas dire qu'il est plus grande que d'observer le maximum de gens savent que dans lequel le blackjack, le casino va commencer à sous comme le choix de jeux il est . site casino en ligne en Suisse Les jeux de loteries ou le jeu , vous pourrez pas les jeux de gagner en jouant au jeu est de réussite est très aimé de diverses thématiques différentes ne pourrez pas assimiler les pertes moyennes et dans la popularité parmi les fervents des jeux de tout récupérer. .
Categories: Buying a Home

Let Us Help

Not finding what you are looking for?

Call or Text 1.563.441.1776

Let‘s Connect

Login to My Homefinder

Forgot Password

Register

Pixel