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Adapting to life working from home seems to have faired well for companies during the pandemic, thus giving many Bay Area residents and others the opportunity to make Truckee-Tahoe home. With a competitive score of 53 and home prices up 22% from last year according to Redfin, Truckee-Tahoe is currently experiencing a real estate boom. However, with summer coming to a close, and an election looming, I predict weโll see things slow down as we enter the fourth quarter of this year.
Considering the nation experienced the plight of a pandemic unlike that we haven’t seen in over 100 years, overall the economic rebound has been unexpectedly abundant. Nationwide uncertainly exists, however, it appears that the growth of the economy is outreaching expectations.ย
Nationwide today, home prices are appreciating. When we hear prices are going up, itโs normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise. Hereโs why.
With mortgage rates hitting all-time lows eight times this year, itโs now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, shares what low mortgage rates mean for affordability:
โIn July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.โ
Though we do have a unique micro-economy in Truckee-Tahoe the low-interest rates still make it affordable to buy a home. Yes, home prices in the Truckee-Tahoe area have certainly increased, however, with interest rates at all-time lows, homebuyers, overtime will spend less to pay off their mortgage. Additionally, of course, time after time, Truckee-Tahoe proves itself to be a relatively stable and profitable market to invest in. Getting into the Truckee-Tahoe market now, will likely lead to financial gains down the road, as home values increase.ย
Pine forest surrounding Emerald Bay at Lake Tahoe, California, USA. Lake Tahoe is the largest alpine lake in North America.
Bottom Line
If youโre thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether youโre thinking of purchasing your first Truckee-Tahoe home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, letโs connect today to determine your next steps in the process.
For a very insightful and in-depth local market analysis go to:ย
https://chaseinternational.com/reno-sparks-tahoe-carson-housing-market-predictions-2020
