For those of you who didn’t know it, and those of you who refuse to believe it, we have entered a seller’s market. With home sales up 9.1% in January, and home inventory remaining the same, we are seeing home values increase. To add to it, buyer traffic is up over 40% from this time last year. The days of finding a move-in ready home for a steal are quickly coming to an end. The Orlando Real Estate market has always been ahead of the curve; Specifically the Dr Phillips Real Estate Market. We are seeing homes sell in a matter of days, and home buyers are paying full price. Especially with how fast Meritage Homes Parkside Dr Phillips Orlando is selling new construction homes, Dr Phillips is deep in a seller’s market.
Our next topic is the return of interest only mortgages. To the unsuspicious buyer, these types of mortgages sound great. In my opinion, they are a bad idea. The whole idea of an interest only mortgage make no sense to me. For a lender to service a loan that a buyer can afford only if they maintain their current level of income, and then several years down the road demand a large payment of the principal of the loan, and expect the mortgagor to be able to pay is ridiculous. This just opens lenders up to a world of trouble. It’s not hard to find a case where someone sues their lender for providing them with a loan the lender ‘knew’ they couldn’t afford. And with the rise in mortgage only mortgages, that is not going to change anytime soon. I can’t put all the blame on the lending companies though. Home buyers need to be diligent with their finances and not over spend. If you don’t know if you can afford a loan, figure it out. Add up your monthly income, add up your monthly expenses, all of them, and your debt to income ratio should not be more than 33%. Most lenders will allow a higher debt-to-income ratio, but if you don’t want to live paycheck to paycheck, keep your debt-to-income ratio low.
That ends today’s segment. Be sure to check back tomorrow for more Dr Phillips Real Estate news.