Home Buyer Info for Iona McGregor – What is affordable?

With season fast approaching, you'll find yourself in opposite spectrums whether you are a buyer or seller in the Iona McGregor submarket.  This area has historically been the most expensive part of town, which is a good thing if you are a seller, and maybe more challenging if you are a buyer.

Statistics show that home sales increase between the months of October and March with a strong wave typically between January and April.  If you are currently looking to purchase a home in this area, I encourage you to start looking soon and making offers on your future home.

Many buyers begin looking for new construction or remodels.  The unfortunate factor in Iona McGregor is that there is very little in the form of new construction.  If you happen to find a newer community, be prepared to pay $200+ per square foot (of living area).  If you are looking for new custom estate-style homes in say Town & River, Gulf Harbour, or any other waterfront community, be prepared to spend over $350 per square foot off-water and over $400 per square foot on gulf access lots.

Generally, Iona McGregor off-water homes built prior to 2005 have sold this year for a median price of $326,000 with average size of 1,875 square feet ($174 PSF).  Homes built after 2005 have sold this year for a median price of $469,000 with average size of 1,985 SF ($236 PSF).

For the same area, homes on Gulf-Access lots built prior to 2005 have a year-to-date median selling price of $633,000 with average home size of 2,335 SF.  Homes built after 2005 have sold this year at a median price of $985,000 with the average home size of 3,543 SF.

The Iona McGregor corridor is starved for new construction, especially in the $350,000 to $450,000 pricepoints.  New homes in this range have sold in less time than the average days on market while buyers seek new homes under $500,000 in new communities with proximity to the beaches, islands, and commercial/entertainment nodes.

For those in the workforce earning $45,000 per year, this sector is priced out of the market unless you have a spouse who earns similar income.  A family with a combined total income of $90,000 is able to afford a home at $385,000 or less.  This takes into consideration a $10,000 down payment and $600 allowance for other monthly debts such as car, credit cards, and other debts.  The total monthly mortgage payment including taxes and insurance should not exceed $1,800 per month.

For this type of buyer, it is very challenging to find a satisfactory home that doesn't require a whole lot of fixings.

That said, there are renovation mortgage programs available for qualified buyers as long as your total home purchase and remodel expenses don't exceed the total amount you are qualified for.  This is very appealing to those buyers since there are quite a few homes that with the right amount of creativity can bring you a nice starter home.

The Allan Group combines their expertise in real estate construction, development, and home sales.  A complimentary consultation with one of our professionals can offer you options to see how you can afford a home in the "Paradise Corridor", otherwise known as Iona McGregor.

Contact Us Today for a complimentary consultation.

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