Here are four great reasons to consider buying a home this summer instead of waiting.
1) Prices Will Continue to Rise
What have home prices been doing? CoreLogic’s latest Home Price Index reports that home prices have appreciated by about 6.6% (nationally) over the last 12 months. The same report predicts that prices will continue to increase at a rate of about 4.3% (nationally) over the next year.
The bottom of home values have come and gone and they will continue to appreciate for years to come. If making a move is one of your goals for this summer, waiting any longer may only hurt your purchasing power.
2) Mortgage Interest Rates Are Projected to Increase
Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting that rates will increase by nearly a full percentage point by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. 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
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with a friend or parent rent-free, you are paying a mortgage, either yours or someone else’s.
As an owner, your mortgage payment is a form of savings that allows you to have equity in your home that you can tap into later in life. As a renter, you don’t have access to those monthly premium payments you are paying and they are virtually a sunk cost.
4) It’s Time to Move on with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate and it appears that both are on the rise.
Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you no longer need that 4th bedroom and it’s time to downsize, or you just want to have control over renovations, maybe now is the time to buy!