If you own a home, and would like to buy a bigger home, now might be the time to make a move. There are several things going on in the Yuma real estate market that are combining in your favor. Let me share some little-known information with you.
#1 – The home you have to sell is IN DEMAND. Over the last 3 years, 7,150 homes have sold in Yuma county. Of those, 5,084 were $150,000 or less. That’s 71.1%! That means if you need to sell your home before you can buy again, and your house is worth $150,000 or less, 7 out of 10 buyers are looking for a home like yours. There is a good chance you can find someone to buy it!
#2 – You may have equity in your home. The last 8 years have been tough on home values in Yuma. In 2006, the average home sold for around $196,000. By 2012, that number was down to only $119,000. That is a 39% decline in the average sales price. Finally, last year, we saw the first improvement in many years. Our average sales price increased from $119,390 in 2012 to $132,921 in 2013. That doesn’t necessarily mean your house has gone up in value, but it does mean there is a chance you could sell your home for a decent price. If you want to get it sold, it is at least worth looking into right now.
#3 – The home you want to buy is ON SALE. For the same reason that everyone is competing to buy homes in the price range of the home you are selling, there is not as much competition in the range you are buying. Only 14% of buyers last year bought a home in the $150,000 – $199,999 range. 17% bought in the $200,000 and up range. Less competition could help you get a good deal on the home you are buying.
#4 – The math is on your side. Mortgage rates are predicted to go up to 5.1% by the end of the year (for 30 year fixed rate loans). So far, we are still around 4.13% (source: Freddie Mac Primary Mortgage Market Survey). A lower rate means a lower monthly payment. Every 1/2% increase in rate means about $40 higher in payment for our average $135,00 home.
There is no way to predict what the future will hold. All we can do is try to make good decisions based on what we think will be best for our family. However, with rates and home prices both at all-time lows, it is hard to imagine going wrong by buying a house today.
I hope this information helps you in some way. Let me know if I can do anything for you!