The Murfreesboro Tennessee homes and real estate market has taken a hit! Home prices have declined along with the number of homes sold. Foreclosures and short sales have pulled the market down and negatively impacted the overall value of homes in the area.
Sounds bleak I know. Add everything together and it is easy to see why people that qualify to buy a home are choosing to rent and afraid to invest in home ownership. I’ve even heard people tell say that you’d have to be crazy to buy a home in the current market! And, I absolutely AGREE!
Crazy Like a Fox!
I believe that our current Murfreesboro TN real estate market is at the prime time for individuals to purchase their first home, or consider selling and moving up to their dream home. Let me give you my top five reasons why NOW is the best time to buy a new home. Hopefully, you too will be saying WOW when you see some of these history making facts in writing!
Home affordability is at an all time high! The National Association of Realtors began tracking home affordability in 1970. According to NAR, homes have never been as affordable as they are today! That's over 31 years of statistics! NAR refers to this as the Golden Era of Home Ownership WOW!
Mortgage rates are at all time lows! That’s right...ALL TIME LOWS! We got numb to hearing interest rates were at 20 year lows, then 30, then 40, 50 and finally 60! But currently, they are at ALL TIME LOWS! WOW!
Need more WOW factors?
Read this article from CBS Money Watch: Why the Time to Buy Real Estate Is Now! They describe our current market as a “once in a generation buyer’s market.” WOW!
Our housing prices have already taken the worst decline. Home prices have dropped to prices we saw five or even ten years ago in some areas. But, income hasn’t dropped at those rates. Look at this chart from Realtor.org - In 2008 the median price home was $196,600 with a 6.15% interest rate, monthly P&I payment $958, income $46,000 a year to qualify. Compare that to August 2011, the median price home was $168,400, 4.69% interest rate, monthly P&I payment of $698, annual income only $33,500 to qualify! Interest rates have dropped even lower to 3.75 in Sept/Oct making monthly payments and income requirements even lower! WOW!
Think I’m biased because I’m a Realtor?
According to Trulia, it is now cheaper to BUY vs. Rent in most parts of the country! Check out this Rent vs. Buy graph!
CNN Money Magazine published an article “How to Calculate If You Should Rent or Buy” which discussed how the dramatic drop in home prices had changed the equation of renting vs. buying. Their basic formula was take the estimated purchase price and divide it by the annual rent of a similar home. Anything below a 15 indicates that you “should start looking for homes” according to CNN Money Magazine!
This home is a nice home that might be something a first time home buyer would be interest in but not sure if they should rent of buy.
It is located in Battleground in North Murfreesboro available for rent.
Listing Broker: Stones River Real Estate Services
Monthly Rent 1,025 or $12,300 per year
This is a very similar home in Battleground for sale.
Listing Broker: Exit Realty Bob Lamb & Associates
Amenities are similar but it has charm that shows it was loved & maintained by the previous owner. It includes a privacy fence and extensive landscaping.
ASKING PRICE: $119,900
If you take the FULL list price (which is highly unusual in this market) and divide it by the annual rent you get 9.74!
Remember anything under 15 and CNN Money Magazine suggested you...START LOOKING FOR HOMES! WOW!
Trulia, CNN Money Magazine, CBS Market Watch, National Association of Realtors.... They all agree that NOW is the time to buy a new home! WOW!
There are many financial reasons to buy a new home now! But most importantly, appreciate that you will be buying a house that will be your own; a house that will be your home.
Your story begins at home.