Nationally, home prices are about the same today as they were in 2003 during the first quarter. At that time, interest rates were about 5.8% and today, the interest rates are about 4%. That means the buyers can get a good ‘value’ on a home today–not just on the price, but the cost as well! The picture below shows just how much can be ‘saved’ on a monthly basis. If you add this up over a year, it is more than $2500! Extend that out over the life of the loan, and it is a great deal of money. Now, this is based on the national averages….
Now, let’s take it to the local level. The most recent S & P Case Schiller price index for the Minneapolis area is closer to January of 2001 when interest rates were 7%!
So that means in the Minneapolis area housing market you would save $469.72 each month, $5636.64 per year and $169,098.48 over the life of a 30 year mortgage. You buy the home for the same PRICE, but the COST of the home is over $160,000 less!
This may be one of the best times–ever–to buy a home. If you would like more information on why now may be a great time to buy a home, just give me a call.
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