Monday, November 23, 2015

What Are the Pros and Cons of Homeownership?

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There are advantages and disadvantages of homeownership. Today, we take a look at both.

Disadvantages of homeownership
  • The potential for the value of the home to go down. I've only seen this happen twice in my lifetime: once in the early '80s and again between 2006-2009.
  • Maintenance costs. This could be anything from roofing to water heater issues to painting, among many other things. You can imagine all the things that could go wrong that you would have to pay people.
  • Flexibility. When you own a home and you have job changes, especially when you move from town to town, it can be costly and difficult to sell your home.

Advantages of homeownership: 

  • Personal freedom and pride of ownership. You can do anything you want to your home, within reason. You can't paint your home any way you wish and remodel, if you so desire, without having to ask permission.
  • Sense of stability. You know you are not going to be moving often and it gives you a sense of security.
  • Wealth building. You have the ability to gain value in your home every single year. As you pay down your mortgage, you build equity in your home. The other big picture is, most of the time, your home appreciates in value! This will give a certain amount of financial freedom in the future -- it will allow you to finance college, retirement, or handle financial hardships you may encounter down the road.
  • Tax breaks. You get to use your interest and your taxes that you pay each year to deduct from your income taxes at the end of the year. You don't get to do that when renting a home.
If you have any questions about home-ownership, or if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!

Friday, November 20, 2015

Where Is the Lane County Market Heading?

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Want to buy a home? Search all homes for sale.

We’re always asked, “Are we in a buyer’s or seller’s market?” Well, today, we experience a shift towards the seller’s favor from low inventory. We currently have about three months worth of inventory for sale.

This year, home sales were up 31% compared to last year, which has lessened inventory significantly.

Additionally, the average sales price also increased 3%. We have an average sales price of $244,000 compared to last year’s $235,000.

The average time on the market has decreased from 86 days to 71, so homes are flying off the market!

We’re expecting a similar market in 2016. The experts credit the improving economy to consumer optimism.

However, interest rates are still unpredictable!
Recently, we experienced a quarter of a perfect increase in October’s interest rates. This continued low rate remains a home run for buyers and sellers in the near future