It is a Great Time to Become a Homeowner!
Buying a home for the first time can be both exciting and scary. Most first-time homebuyers vacillate between the euphoria of owning a place of their own and the angst of what are they ready for a 30-year commitment? There is so much to know. How do you hire a Realtor? How much home can you afford? How do you qualify for a mortgage? Is this the right time to get into the market?
The answer to the last question is YES if purchasing a home in the Alabama Gulf Coast. The median sales price of homes is lower than this time last year, while the median rent price is rising, increasing eight percent between April 2017 and now. Despite the recent interest rate hike, it is still cheaper to buy than to rent in Mobile, Fairhope and Orange Beach (assuming a 20 percent down payment, owning the home for 7+ years a buyer with good credit, and an interest rate of 4.35 percent).
Fairhope, AL
Buyers eying Fairhope real estate will gain the most by purchasing in lieu of renting. It is 37 percent cheaper to buy than rent in Fairhope. The median sales prices is currently about $180,000. The median rent price is $1,450 per month.
Mobile, AL
If city life is preferred, great news, Mobile area homes for sale are 34% cheaper to buy than rent. The median sales price of homes in Mobile is $125,000. The median rent price is $975 per month.
Orange Beach, AL
Buyers lured to the beauty and abundant activities offered in Orange Beach will pay a bit more but still reap significant benefits. Homes in Orange Beach are 31% cheaper to buy than rent. The median sales price of homes in this city is $250,000. The median rent is $1,800.
If you are serious about exploring the homebuying process, the first step is an in-depth conversation with a LOCAL mortgage lender. We can provide a full list of reputable lenders, yet we refer the vast majority of our clients to Bank of England due to their exemplary customer service. At the conclusion of that meeting, you will know if you qualify to buy a home, as well as whether or not a home purchase is financially feasible. Your Bank of England Loan Officer will help you get a game plan together, from designing a budget for your mortgage payment, keep you abreast of interest rates and estimate your ideal price range with their mortgage rate calculator.
These advantages will not last through the end of the year. The economy is strong and the Federal Reserve plans to increase interest rates one or two more times before the end of the year. Inventories are flush but will diminish significantly after Labor Day. The professional agents at Jason Will Real Estate are ready to help you find your dream home, simply call our office at 251-929-4444 to speak to the agent on duty or send an email to JWRE Agent Services at meganj@jasonwillrealestate.com.
Note: Median sales prices and rent vs buy percentages were derived using data and tools from Trulia.