It’s a Great Time to Buy a House
With spring right around the corner, you may be wondering if you should wait to enter the housing market. Here are four great reasons to consider buying a home today instead of waiting.
Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. It also predicts prices will continue to increase at a rate of 5.4% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
Mortgage Interest Rates Are Projected to Rise
Interest rates have been historically low. Most experts predict they will begin to rise over the next 12 months. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors all project rates will be up almost 3/4 of a percentage point by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A higher interest rate means your housing expense will be more.
Either Way You Are Paying a Mortgage
A paper from the Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does-as Americans intuit-end up making more financial sense than renting.”
It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears BOTH are on the rise.
But what if they weren’t – would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it’s time to buy. Buying sooner rather than later could lead to substantial savings.
Real Estate Bottom Line
If you are ready and willing to buy, find out if you are able to. Let’s get to together to discuss finding you your dream home.