Paul’s Prognosis 1

December is often considered a slow month in real estate, but not 2020, at least for me. There are a significant number of families looking to buy with the demand being greater than the supply of homes on the market. This in turn results in home prices rising at a brisk pace and good opportunities if you are a seller.
In December with the hustle and bustle of the holiday season I have been fortunate to complete a number of transaction with some wonderful clients. Of course I am in real estate to earn a living, however to meet some wonderful people along the way is a bonus.
Per Gary Book, Senior Loan Officer with Anderson Financial, “interest rates on 30 year fixed rate loans are at their lowest point this century, 2.75%”. Simultaneously, homes in Oakland County are appreciating at a of 6.9% pace with a median price being $279,900. If you can borrow a 30 year fixed rate loan at under 3% while home prices are rising at a pace of just under 7%, you are ahead by either becoming a home owner or buying a more expensive and comfortable home.
Because of leverage your return on “out-of-pocket dollars” is much higher. Your annual return on dollars invested would be 34.6%. Give me a call and let’s talk.