Buyers Purchasing Power
Hey, I just wanted to give you an example of the buyers purchasing power at the end of 2014, and what the economists are forecasting for the future. No one can look into the crystal ball ,but everyone is predicting a very good 2015 for the real estate market.
By looking at the chart, we can see that if interest rates go up by even 1% the buyers purchase power shrinks by 7.5%. In the example: a buyer that qualifies for a $300k house today would only qualify for a $277,500 house in the 4th quarter of 2015. Keep in mind that even a 4.75 interest rate on a 30 year loan is still crazy good, but why wait. Real estate agents always say it is a good time to buy, but look at the chart. “It is a good time to buy!” Call me and I would be happy to prepare a specific chart for you.