Hi everyone. James Bowerman the Creative Agent coming to you with a brand new segment. I’m calling Creative Considerations. Now, this may look familiar. It’s essentially a new improved version of the market update that I typically put out once a month. The first thing I want to talk about is the recession. A recent survey shows 46% of Americans believe a recession is coming in 2020 so what does that mean for the real estate market? A housing crisis is not the same thing as a recession, but we all think back to 2008 when the housing crisis caused the recession. However, in three of the last five or sessions, we actually saw an increase in home prices. So just keep in mind that even if there is a recession coming, it’s probably going to be caused by other economic factors. We have the stock market, we have trade wars, we have a political election coming up, but the housing market right now is amazing.
So now it’s September. Kids are back in school, things are starting to slow down. So we can see that in the numbers now. 95 homes coming soon. Currently in Anne Arundel county, that’s a slight increase over what we saw last month. Active homes for sale, that’s current homes on the market that you can go out and purchase. Now it’s a slight decrease from what we saw last month, but really not a huge number and we can also see a slight decrease in the homes that were under contract. All of these numbers are kind of moving in the same direction. 860 homes sold last month. Now this is the time of year where most people want to get into their home and get settled before the school year starts. They average price was around $400,000 in Anne Arundel County and this is showing actually the percentage of the list price to soul price. So if I list the home for $400,000 what do you think I can get for it?
You’re probably going to get around 98.6% of that asking price. That’s the average. And last month it was a little higher, but it’s been pretty typical. 2.6 months of inventory. So if no other homes came on the market, it would take 2.6 months to sell out everything that is a sellers market, balanced market in the middle and about six months buyers market. Anything over that. However, let’s talk a little bit about interest rates. 3.52% as an interest rate for a 30 year fixed loan, that’s incredible. Three and a half percent. If you were to buy a $400,000 house, no money down, you’re looking at about $1,800 a month. It doesn’t include your taxes and insurance. However, if we compare that to what it was last year at 4.67% your payment was 2060 $7 that’s $267 savings a month, and to put that, in other words, a home that was $350,000 last year at that rate, you can now get a $400,000 home at that rate.
That’s $50,000 more that you can yet. So although prices are going up and it’s a sellers market, interest rates are really helping out buyers to compete with that and be able to get more house. So three and a half percent, if you’re thinking about buying a home, get off the fence. Don’t be afraid that a recession is coming. Guess what? The market is great. If you’re not ready to move, the other consideration is refinancing. So why not get down to three and a half percent? Probably save a whole bunch on your monthly payments. If you need to connect with a professional, let me know. All right guys, that’s gonna do it for me. I hope you enjoy the episode of creative considerations. If you have any questions or comments, please leave them in the feedback below. And if you know anybody who’s interested in buying or selling a home, I would love to help them out. Please tag them or share this video. Thanks again for watching. Have a great day.