Avg. Sales Price of Houses Sold (United States)
Takeaways:
- Home prices trend upward over time
- Since 1965, take any 8 year period. The average sales price at the end of that period is always higher than the beginning. (read: historically, even if there is a decline in average sales prices, you’re better off holding a property and prices will return)
- This graph suggests that real estate can be a sound long-term investment, even if there are periods of decline
30-Year Fixed Mortgage Average in the United States
Takeaways:
- Although we are currently at short-term interest rate highs, historically, today’s rates are not out of the norm.
- Since 1971, interest rates only dipped below 3% TWICE: July 2020-February 2021 (8 months) and April-October 2021 (7 months).
- Emily Isabel’s note: Please don’t forget to consider the cause of these record-low interest rates. A global pandemic threatened global economic security, and our leaders decreased the cost of lending in order to prop up the U.S. economy.
Median Sales Price in Massachusetts from 2019-2024
Takeaways:
- Home sales prices change in a cyclical manner. If you can purchase in the fall and winter months, you may pay a lower sales price than you would in the spring/summer.
- The median sales price in Massachusetts has risen from $436,600 in 2019 to $643,300 in 2024. Homeowners who kept the same property from 2019 to 2024 seem to have accumulated on average $206,700 in equity by simply owning their home and paying their mortgage/other real estate related obligations.
Want to understand what these graphs mean for you, specifically? Reach out to me for a consultation. (edias[at]mbamortgageco.com)
