Is Now a Good Time to Buy a House?

According to a recent report in Forbes, 98 percent of people who rent hope to buy a home in the future. With the current housing market and the state of the economy, many are wondering-- is now a good time to buy a home? As the housing market begins to recover, there’s a greater confidence in purchasing a home as interest rates and prices are lower than they have been in years. With the economy growing stronger, this is good news for consumers and home builders. If you’re qualified to buy a new home and it makes sense financially, there are 4 very good reasons to seriously consider purchasing a new home.

1. Affordability

The National Association of Realtors reports houses are more affordable now than when the group originated in 1970, according to the housing affordability index. The housing affordability index involves the relationship between mortgage interest rates, family income and home prices-- all indicating, now is a good time to buy a house.

2. Large Inventory

Although right now may not necessarily be a seller’s market, there are many new homes, existing homes and foreclosures to choose from when purchasing a home. The large selection provides more choices, which helps lower prices due to stiff competition. As home sellers become desperate to sell their home, home buyers can take advantage of the situation by buying a new home for a great price.

3. Low Mortgage Rates

Not only are home prices affordable right now, but mortgage rates-- providing low monthly payments. Recently, a 30-year fixed mortgage rate hit a level that hasn’t been seen in decades. Although the low mortgage rates and housing prices are appealing, lenders till require good credit and background information prior to approval.

4. Builder Discounts

Many people interested in purchasing a home think completed new homes are just out of the question due to cost. But, this isn’t necessarily the case. Home builders have become quite aggressive with their pricing, offering steep discounts.

"Builders want to save their credit, save their brand, save their reputation and clear out inventory," says Jay Papasan, author of Your First Home.

Is now a good time to buy a house? Yes, if it makes financial sense. As the economy and housing prices recover, home prices and interest rates will increase as well. If you wait to buy a new home, you’re likely to end up with less for your money than if you begin buying a new home today.

If you’re interested in learning more about purchasing a home, give Steven Larson a call today!