Welcome to our weekly Motto Moment with John Kunkel with Motto Mortgage and this week, we will discuss the Sharp County Real Estate Market data. We mention how hot the real estate market is here in Sharp County every week. This week, we will discuss some of this data in more detail.
Q: What exactly do the numbers look like and how does that impact one’s ability topurchase a home?
A: The local real estate market continues to be very active. When a property comes on the market, it is often sold before the agent has time to put a sign in the yard. It is a seller’s market, and it is the time for anyone interested in buying a home to have a prequalification letter to accompany the offer.
A home can be one of the most significantinvestments one makes in their lifetime,and what is important is the return on theinvestment. In Sharp County, for August, the median home price was $175,596,which was around $113 per square foot. If you take the median home price of just over $175,000, that home would have appreciated 7.38% over the last five years.The forecast for that same home for the next five years is an increase of 15.67%, or over $27,000, taking your investment to over $200,000. A challenge we have in Sharp County is inventory. There aren’tenough homes on the market to meet the demand. As a result, prices are up, and sellers can and will often get their asking price. If you find the home of your dreams and can afford it, I recommend not waitinguntil rates come down. This supply and demand increased property values this year, raising property taxes. Simply put, for almost anyone who owns land, the valuecontinues to appreciate.
The population of Sharp County is roughly 17,800, with an unemployment rate of 4.14%, down from 2021’s 4.89%against a national average of 3.8%. The median household income for Sharp County is $32,648 against a national average of $55,698.
The affordability index compriseshome prices, interest rates, wage growth, and jobs. A reading of 100 means that a household earning the median income can afford the median home price with 20% down. As of August, the affordability index was 141%, well above 100.
An area of opportunity is in the renter category. In Sharp County, renters are projected to be 4,323, with 1,098 who can afford a home. With the appreciation forecast, I encourage those renting to review their finances and contact me to discuss loan programs that may meet their needs. We have down payment assistanceprograms that are both repayable and forgiven.
The last sector we will look at this morning is demographics. In Sharp County, 9,800 individuals aged 18-64, with46.4% coming in at ages 45-64. One of ourmost significant opportunities is to bring living wage jobs with growth opportunitiesto the county and better serve our younger generations.
Q: John, what about the status of student loan repayments?
A: Student loans are a hot topic and a burden for many. The Department of Education’s COVID-19 student loan forbearance program has ended. On September 1, interest resumed, and payments will be due beginning in October. Americans owe $1.77 trillion in federal and private student loan debt as of the second quarter 2023. That’s up 1.25% from the second quarter of 2022. Anyone with student loan debt should visit studentaid.gov and apply for the repayment plan that best fits their financial status.Once in default, it can damage one’s credit, and bankruptcy will not wipe away student loan debt. So, plan now for a repayment plan that works for you and gives you thefinancial freedom to be a homeowner.Student loan payments can affect your overall debt-to-income and buying power when purchasing a home. If you have student debt and would like to discuss how it affects your debt-to-income when buyinga home, please contact me, and I will behappy to discuss this with you.
Q: Is there still an opportunity to meet with experts still available?
A: Yes, on Tuesday evening, September 12, from 5:00 – 7:00 p.m., I will host a homebuyer meet and greet at the Spring River HUB just a couple doors down from City Hall in Cherokee Village. Realtors, appraisers, title companies, insurance brokers, home inspectors, and I will be on hand to answer all real estate-related questions. Borrowers are invited to stop byto ask questions and get preapproved.Again, that is Tuesday evening, September 12, from 5:00 to 7:00 p.m. at the Spring River HUB in Cherokee Village. For any questions, please reach out to me.
This has been your weekly Motto Moment with John. If you have questions or if I can help unlock the home of your dreams, give me a call at 479-621-3500. Let me preapprove you for your first home, dream home, investment property, or farm. A pre-approval letter makes one much more likely to accept your offer in this hot real estate market. I’m John Kunkel, your Motto Mortgage Loan Officer. Unlocking homeownership dreams one key at a time.
Motto Mortgage offices are independently owned, operated, and licensed. An equal housing opportunity. John Kunkel NMLS 1-4-1-6-0-7-8, Motto Mortgage United Group 2-0-7-8-9-1-5, Motto Mortgage Velocity 2-2-8-8-2-5-6, and Motto Mortgage Heritage 1-7-2-0-4-3-8.
