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Metro Atlanta Real Estate Advisor

Resource for Buyers/Sellers in Gwinnett, Oconee, Clarke, Jackson, Hall

By Hank Bailey | Agent in Buford, GA

Zillow Proves Home Affordability Strong

From the Prudential Georgia Featured Blog on Realtor.com.  For the complete blog post please click here to go to http://prudentialgeorgia.featuredblog.com!

“You say tomato, I say tomahto.” Yesterday Zillow released its Q4 Real Estate Market Reports for the U.S. highlighted by 130+ metro areas.  According to the report, U.S. home prices fell 2.6 percent from the third quarter of 2010 to the fourth. The Zillow Home Value Index fell 5.9 percent on a year-over-year basis, with average home prices at $175,200, which Zillow says is 27 percent below the market peak on June of 2006.

Well you are asking about now, “Well why are you so full of sunshine Hank?”  I will tell you.  Freddie Mac, http://www.freddiemac.com/pmms/pmms30.htm, shows the average 30 year mortgage rate at the peak of the market, as defined by Zillow, in June of 2006 at 6.68 percent.  This means that the same average to median priced home at $175,000 some four and one half years ago would have cost (including escrows) that home buyer (assuming 5% down) $1,332.20 per month and $479,592 in payments over 30 years.  Today at a 5 percent 30 year mortgage, would mean a payment of $1,154.09 per month and total payments over 30 years of $415,472!

For complete blog post including step by step what to do to get started please click the link to be directed to http://prudentialgeorgia.featuredblog.com!
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