People always ask me “when is the best time to buy a house?” That’s kind of a trick question. It’s not like there’s an “End Of Year Blowout Sale!” like when you’re buying a car, right? There are, however, other factors you should keep in mind and it really comes down to these 4 things:
1.Mortgage Rates Are Low RIGHT NOW
2.Home Prices Are On The Rise
3.Rent vs. Mortgage – Mortgage Wins
1. Mortgage Interest Rates Are Projected to Increase Next Year
Right now mortgage rates are lower than they were a year ago. As a matter of fact, according to the Freddie Mac Primary Mortgage Market Survey, interest rates for a 30-year mortgage have recently hovered just above 3.5%. This is great news for buyers in the market right now, because low-interest rates increase your purchasing power! However, and there’s always a however, experts are predicting rates will rise over the next 12 months. Of course, an increase in rates affects your wallet and a year from now, the cost of buying your house will increase so why wait?
2. Prices Will Continue to Rise
It’s a fact of life, the economy is good and when that happens prices for everything go up. Homes are no different. According to CoreLogic’s latest Home Price Insights Report, home prices have appreciated by 3.6% over the last 12 months. Those same folks predict that next year homes will appreciate at a rate of 5.8%.The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
3. Rent vs. Mortgage
I’m always amazed at folks who continue to rent “because I don’t want to be tied down by a mortgage”. Guess what, rent is a mortgage, the only difference is you’re making someone else rich when you pay rent. As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.Are you ready to put your housing costs to work for you?
4. It’s Time to Move on With Your Life
In a lot of cases, it’s the right time to move on. Your life circumstances have changed…you got married, your roommates are bailing on two-thirds of the rent, you’ve had kids and need more space. Whatever the reason, look at the actual reason you’re buying and decide if 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’re tired of lining your landlord’s pockets, maybe now is the time to buy.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?
Bottom LineBuying a home sooner rather than later could lead to substantial savings. If you’re thinking about buying and just want to talk about the process, let’s talk and figure out how I can help get you home.