As the season changes and you start looking toward the autumn and winter holidays, you might wonder whether now is really the right time to buy a home. It turns out, the answer is “Yes!” Here are four reasons why now is a great time to buy.
1. Home Prices Are On The Rise
CoreLogic's latest Home Price Index reports:
Home prices have appreciated by 6% over the last 12 months.
The same report forecasts that:
Home prices will continue to increase at a rate of 5.4% over the next year.
After polling over 100 economists, investment strategists, and housing market analysts:
The Home Price Expectation Survey projects home values to appreciate by more than 3.5% a year for the next 5 years.
In other words, the days of falling home prices are over. Housing prices are on the rise, so waiting for the market to drop to get a “deal” is unlikely to pay off.
2. Mortgage Interest Rates Are Still Historically Low
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained at or below 3.5% for 13 consecutive weeks. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors [project] that rates will increase by this time next year.
As with housing prices, mortgage rates are probably as good as they're going to get. Waiting around for them to get better doesn't make sense at this point: you're better off taking advantage of them where they're at now.
3. Whether You Rent or Own, You're Still Paying a Mortgage
If you rent, you're paying your landlord's mortgage. If you own, you're paying your own. Not owning a home doesn't mean you don't pay a mortgage… it just means you're paying someone else's. Consider the following quote from the Joint Center for Housing Studies at Harvard University:
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. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.
Have any questions about how to find the right home, at the right price, for you and your family?
Feel free to reach out to us with your questions. Helping people find the right homes isn't just what we do — it's what we love to do. Contact us any time.