Take heart ... your home is now worth as much as it was in ... 2003 ... just 9 years ago. I say that with tongue in cheek.
From RIS Media
While this study shows that prices are up 1.2%, that would mean about $2400 on a $200,000 home. Truthfully, that may not mean a whole lot, since selling prices or asking prices don't usually reveal "seller assist with closing costs" ... and we see a lot of that in our current market. People are still buying homes when they don't have enough $ to cover their closing costs (such things as title insurance, tax & insurance escrows, 1st year of HO insurance) Those costs run about 4-5% of purchase price (generally). So, someone buying on an FHA loan with 3.5% down will have a total outlay of about 7.5% to 8.5%.Home Prices Rebound to 2003 Levels
By Zoe Eisenberg
More great market news came through yesterday: According to S&P/Case-Shiller, in July, the average home price rose to the same level as those seen during summer 2003, when the housing boom first started its journey toward the 2006 peak. While this may not signify that we are currently standing on the cusp of a market boom, it does show a significant turnaround, and perhaps hints at a definite end to real estate’s bleak streak. The recent S&P/Case-Shiller national home price index showed that in July, prices increased by 1.5 percent for the 10-City Composite and by 1.6 percent for the 20-City Composite.
It may very well be that the low interest rates are prodding people to buy now, even when they are short on cash up front.