Here are four great reasons to consider buying a home today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.4% over thelast 12 months. The same report predicts that prices will continue to increase at a rate of 5.2%over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100economists, investment strategists, and housing market analysts. Their most recent reportprojects home values to appreciate by more than 3% a year for the next 5 years.The bottom in home prices has come and gone. Home values will continue to appreciate foryears. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgagehave started to inch up, most experts predict that they will begin to rise even more over the next12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the NationalAssociation of Realtors are in unison projecting that rates will be up almost three-quarters of apercentage point by this time next year.An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will bemore a year from now if a mortgage is necessary to purchase your next home.
3. Either Way You are Paying a Mortgage
As a recent paper from the Joint Center for Housing Studies at Harvard University explains:“Households must consume housing whether they own or rent. Not even accounting for morefavorable tax treatment of owning, homeowners pay debt service to pay down their ownprincipal while households that rent pay down the principal of a landlord plus a rate ofreturn. That’s yet another reason owning often does—as Americans intuit—end up makingmore financial sense than renting.”
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 thecurrent mortgage rate. It appears that both are on the rise.But what if they weren’t? Would you wait?Look at the actual reason you are buying and decide whether it is worth waiting. Whether youwant to have a great place for your children to grow up, you want your family to be safer oryou just want to have control over renovations, maybe it is time to buy.If the right thing for you and your family is to purchase a home this year, buying soonerrather than later could lead to substantial savings.