So is the glass half empty or half full? It depends on how you think and what your plans are for the next 3 to 5 years, maybe even 7 years. For the next several post, I will talk about the following 4 points broken up in separate post to be short and informative.
- If you’re not planning to buy or sell, it doesn’t matter and your glass is full
- If you’re planning to buy, the glass is more than half full
- If you’re planning to sell, the glass is at least half full
- If you’re planning to sell, and buy; what is it? Is it half full for buying and half empty for selling? The answer to be forthcoming.
Let’s take a quick look at scenario #1 and then move to #2:
#1 Since you’re not buying or selling, this time period doesn’t matter to you. Enjoy your life, plan vacations, celebrate holidays with friends and family, create a life worth living and memories worth cherishing; and remember in the midst of a storm you may have the luxury of being on an island of tranquility.
#2 You are planning to buy a home. The reason the glass is more than half full. You are experiencing one of the best home buying times that the Centennial Aurora Real Estate (CARE Now) area has experienced since the mid 1990’s to year 2001. During this time period, home price appreciation from year to year in the CARE area ranged from 6.00% to 20% in different neighborhoods. (my personal sales records and tracking numbers)
Even from 2002 thru the end of 2006 homes appreciated in different areas ranged from:
2.00% to 7.00%.(my personal tracking numbers) Home Prices are definitely lower than years 2004 thru early 2007.
Interest rates are also lower now than it was just a few months or few years ago. Since 1972 thru early 2001 interest rates have been as low as 7.00% to as high as 16.00% in 1981. (Wells Fargo interest rate records).
They are now hovering between 5.875% to 6.50% and possibly lower as of this post.
So why does interest rates and home price make a big difference in home purchases? The reason is you must compare not only sales price, not only interest rates, but rather how home sales prices and interest rates combined affect your money and your day to day bottom line amount of money you spend. Next post is example of how this affects you in real spendable dollars.