There are a couple of factors that are contributing to why 2016 is the time to make a new home purchase. Capitalizing on some key positive trends in the housing market can really help buyers with their new purchase. Industry experts from Zillow, Realtor.com, and other home search sites agree that 2016 will be the best time to purchase. Here are some top reasons why you should purchase a new home in 2016.
- Home prices are stabilizing. Homes prices have been increasing over the last several years. In general homes prices have leveled out and the growth is not expected to be as great this year. Average median home prices are projected to increase 2.6-3.5% this year.
- With home price stabilization more sellers will enter the market. Inventory will increase as sellers will want to capitalize on stable prices with attractive interests rates. There will also be a number of new builds entering the market at attractive price points meant for first time home buyers.
- Down payment assistance programs are available in numerous states. Arizona has a down payment assistance program called Home in 5 that provides a non-repayable 3%, 4%, or 5% towards down payment/closing costs.
- Interest rates are still at historic low. Interest rates are expected to rise towards the end of the year. Lower interest rates means higher purchasing power for buyers.
- Clear and concise mortgage terms. TRID which was implemented in October of 2014 has mandated clearer terms at the closing table. This helps alleviate any stress that first time home buyers can feel when talking numbers.
- Rent prices will continue to climb. In most cities rental prices are more that the cost of a mortgage payment, Phoenix included.
Please take the time to consult with your local lender to determine if your financial position makes you a candidate for a new home purchase this year.