So it’s that time of the year where school is now underway and the seasons are changing. With that brings thoughts of the holidays and family gatherings and planning for the new year ahead. So if you are on the fence and aren’t sure whether now is the time to buy I’ll give you 4 GREAT reasons to buy a home now rather than wait.
1. The first one’s obvious – Prices will continue to rise- home prices will only continue to appreciate for years. It no longer makes sense to wait! Home prices are projected to appreciate by 4.5% in 2014 and by over 19% from now until 2018. A recent report released recently projects appreciation in home values over the next five years to be between 11.2% (most pessimistic) and 27.8% (most optimistic). Waiting to buy no longer makes sense!
2. Mortgage Interest Rates are projected to Increase. Right now mortgage rates are still at favorable levels and a market study shows that interest rates for a 30 yr mortgage have softened recently, but most experts agree and predict that they will begin to rise later this year to almost a full percentage point by the end of next year.
The sooner your get a signed purchase agreement, the sooner you can lock in your interest rate that will suit your financing. An increase in rates will impact your monthly mortgage payment directly. It will cost you MORE a year from now than it would if you bought your home today! The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the spring of 2015, that’s just around the corner! That is an increase of almost 3/4 of a point over current rates.
3. Either way you are paying a “mortgage” Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners 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
4. It is time now! The “cost” of the home is determined by 2 components – the price and the current mortgage rate. And Both are on the rise! Whether you want a great place for your kids to grow up, or you want your family to be safer, or you just want to have control over the things you do to your home,-maybe it is time to buy!
Here’s another thought – The best time to buy a house could be now because many home buyers tend to wait until the spring and summer to house-hunt, so there will be less competition now, giving you more opportunities to make an offer and get it accepted. There is less buyer activity in the winter, less competition which then turns out to be less price escalations, knowing you’ve got a head start on all of the other potential home buyers who won’t begin their search for another few months.