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Raleigh Real Estate Home Affordable Index, What does this really mean?

The news reports almost daily that it is a great time to buy residential real estate in the Triangle area because of how affordable homes are today compared to years past.  In fact, they brag that homes have never been this affordable for over 50 years!  Compared to the past 50 years you can almost steal a house today because of falling homes values and low interest rates that are combined together for a real estate home run.

Without any doubt Raleigh homes are more affordable today than years past. Everyone talks about longing to return to what we thought was a great real estate market in 2006 and 2007. Everyone longs to go back to that time and I am not sure why.  Homes are more affordable now than they were then.  If you are looking for a way to get out of debt faster and have financial security in later years investing in real estate is your best solution.   Here is a quick look at a Raleigh Real Estate Home Affordable Index so you can see for yourself that now is the time to buy real estate:

EXAMPLE

$200,000 Raleigh Home  –  20% Down payment – Loan amount financed $160,000

TIME COMPARISION                                    2007                                                       2011

MORTGAGE TERM FIXED RATE                        30 year                                                 15 year

INTEREST RATE                                                   7.375%                                                  2.97%

MONTHLY PAYMENT (P&I)                                $1,105                                                   $1,103

TOTAL PAYMENTS MADE OVER LIFE OF LOAN       $397,828*                      $198,427*

TODAY HOME BUYERS CAN SAVE  $199,356 with a 15 year fixed rate mortgage and have their home completely paid for in full, in half the time.  Today’s home buying power means Raleigh real estate is on sale at ½ the price, and half the time.  Now that is what all the talk about affordability is all about.*

For more information on Raleigh residential real estate for sale, please call our Raleigh Area Real Estate office at 919-235-0007 or visit www.lindacraft.com

*Please double check this information with your lender as we are not mortgage lenders, only real estate professionals.

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