Market Purchasing Power During Coronavirus

Market Purchasing Power During Coronavirus

When the Coronavirus pandemic began in March many were worried they would have to put off buying a house until the unforeseeable end of the pandemic. However, I am here to report there has never been a better time to refinance or buy!

From March to July Utah real estate prices have seen an average 3% increase and interest rates are extremely low, making purchasing power a lot greater for buyers. These lower rates allow buyers to purchase a more expensive home, but still have the same or lower payment than before COVID hit.

For example, a recent client of ours was spending countless hours maintaining his older Taylorsville house. His family had grown too big for the space and each month he was pouring hours of labor and money into home repairs, losing out on quality time with his wife and children. With rates being so low he decided to look into purchasing a newer home that did not require so much monthly maintenance.

Thanks to COVID interest rates, we were able to find a newer West Jordan home built in 2018. It was located in a great family neighborhood, with enough rooms for each child to have their own bedroom. Little to no maintenance so he could spend less time doing home repairs and more time with his family. He was able to purchase the new home for $480,000 at the same payment that he would have had at $400,000 6 months ago!

Prior to the current low interest rates this client would not have been able to get a house that fit all his needs for the same low payment. To get the space he wanted he would have had to settle for $400,000 house in an older neighborhood, but with interest rates being so low he was able to get exactly what he wanted with a great rate and an affordable payment to fit his budget.

Comparison of Purchasing a Home Before COVID VS Purchasing Today

The current low interest rates can help get you into the house of your dreams for the same payment you would have paid 6 months ago for a less expensive home.

If you too are wanting to take advantage of the amazingly low COVID interest rates please send me an email at anthony@alvmortgage.com, or feel free to text or call me at 801-206-4343.

I look forward to talking to you soon.

NMLS # 888979.

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