The holidays are upon us and there are a lot of things pulling for your attention. You may have put the home search on the backburner. However, here are four great reasons to consider buying a home today instead of waiting.
1. 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. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year. The bottom in home prices has come and gone. Home values will continue to appreciate for years.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4.2%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year. An increase in rates will impact YOUR monthly mortgage payment. This means that a year from now, your housing expense will increase, if a mortgage is necessary to buy your next home.
3. Either Way You are Paying a Mortgage
Anyone that has anticipated listing deductions on their yearly taxes will give a big nod to the benefits of homeownership. Owners 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... making someone else money, that could be useful elsewhere.
4. It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major factors: the price of the home and the current mortgage rates. It looks like 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 now is the time to buy.
If the right thing for you and your family is to purchase a home, buying sooner rather than later could lead to substantial savings. Give me a call.