If you’re even thinking about buying a home, then there are a few things you need to know. Firstly, the cost of rent is dramatically going up in many parts of the country and some areas are seeing record breaking increases. Although this alone may not be enough to consider making the move into your new home (if you currently rent), there are other factors that are making now an opportune time to buy for almost every situation.
Housing inventories are continuing to shrink in many areas. If you wait too long to find your dream home, it may become increasingly difficult. Housing prices are expected to increase dramatically, and as early as 2018 home seekers may be looking at an average increase in cost of as much as 25%. While that’s great news for sellers, it is terrible news if you are in the market for a new home. A home that is on the market today for $200,000 would cost $250,000 at an increase of 25% and a $400,000 home would increase as much as $100,000! That’s a big difference to pay for the same home.
You are paying a mortgage whether you realize it or not! What do I mean by this? If you are renting then you are still paying a mortgage. If you are paying rent, then you are simply paying the landlord’s mortgage. Regardless of what changes may occur in the housing market, this is never the most economical course of action.
Experts insist that interest rates will rise again by the end of this year. This prediction comes from those “in the know” including the National Association of Realtors, Fannie Mae, Freddie Mac and the Mortgage Bankers’ Association. The average 30 year mortgage is expected to be over 5%- definitely higher than today. 30 years is a long time to pay more than you might have if you had acted sooner. Taking advantage of the low rates now being offered is a wise decision that will reward you for many years to come.
One last point to consider; the average homeowner has a net worth that is 30 times greater than that of those whom chose to rent. Real estate is, and always has been, one of the most stable and reliable investments that anyone can make. With the cost of housing soon to increase, now is the perfect time to get into your next home! Don’t wait until you can’t afford to buy what you really want. Contact us today with your questions, and let’s start your new journey together.