9 Reasons Why Right Now is the Time to Buy a Home in Columbus OH.
1. Interest Rates Are Rising – Interest rates are still around 3.5%. This allows you to buy more home for less. Rates are expected to increase a full point this year to 4.5%. For every 1 point the rates increases on $100,000 your monthly payment increases by about $85.
2. Prices Are Rising At An Accelerated Rate – Central Ohio has the lowest inventory of homes since 2002. This low inventory is driving up prices. Once school is out I wouldn’t be surprised to see a 10% increase in year over year prices.
3. Inventory Is Shrinking – As of today there are only 9,100 homes available in the Central Ohio MLS. To create a balanced market, we need about 12,000 – a six month increase. Compare that to recent years – in April 2012 there were 13,000 homes on the market. In April 2011 there were 17,000 homes on the market.
4. Rents are skyrocketing! Typically, rents increase 3% - 5% each year. Several landlords are raising rent 5 % - 7% this year.
5. Payment Protection – Buying a home and locking in a low 30 year rate will keep your payment consistent while your income rises helping your debt to income ratio in the coming years.
6. Build Personal Wealth – If you are renting a home at the end of the rental period you have no assets. If you own a home you are paying down the balance of your home and will ultimately help you retire.
7. Gain Tax Benefits – Many times it can be cheaper to buy than to rent. Once you take advantage of the tax credits of home ownership and calculate those savings into a monthly payment you may ultimately be able to own for less than your rent.
8. Everyone Will Be Looking Soon – In Central Ohio a bulk of the homes are sold while school is out. This will create more multiple offers and bidding wars. Many families don’t want to move during a school year. If you start looking now, we can schedule the closing at the end of the school year. Let’s get started today!
9. Free Home Buying Seminar – I will be holding a free home buying seminar that will walk you through the home buying process from start to finish. We will go over financing, the process, closing, inspections, valuations, and much more. The date and time will be set and sent out this weekend.