$173 MILLION VOLUME IN 2013 MATCHES $163 MILLION IN 2001.
THE KEY: LOWEST MORTGAGE RATES IN DECADES.
82% OF ARROWHEAD WOODS HOME SALES ARE BELOW $500,000. In a slow but steady rise, we are enjoying a 16% price increase in this tier. Mortgages at 4.5% are feeding first tier growth with a maximum conforming mortgage of $417,000. A conforming loan fits a purchase up to $519,000 with 20% down.Recession loan rates gave vacation home buyers more house for less money.
Under $519,000, buyers are striving to find their dream at a 4.5% loan rates.
The Second Tier, $500,000 to $1 million; prices are stalled. Homes sold over $1 million, the Third Tier, are 25% of total volume yet 6% of total sales, with a significant downward price tilt. Buyers reason, why pay more with these rates?
Jumbo loans, over $417,000, have higher rates and buyer qualifying is more demanding. The big question; will mortgage rates rise – as expected – this fall?
COULD LOW MORTGAGE RATES SLOW ARROWHEAD WOODS GROWTH?