We're in the interim between the hectic holiday season and the chirping birds of spring - which, in fact, appears to be the perfect pocket of time this year to get active in the residential real estate market.
If owning your first home or moving to a new home is one of your goals for 2015, here are some of the perks of buying now rather than waiting for spring.
1. Prices are rising
According to the recent Home Price Expectation Survey, which consists of a distinguished panel of 100 economists, investment strategists, and housing market analysts, home values are expected to appreciate between 15.1% and 32.8% over the next five years.
The bottom line is that low home prices are a thing of the past, and home prices will continue to elevate with time. The optimal time to buy a home, with this evidence, is now. Waiting will make your ideal home even more expensive.
2. Mortgage interest rates are projected to increase
Most mortgage experts agree - it is very likely that 30-year mortgage interest rates will increase within the next 12 months. Additionally, the Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors agree that rates will be up a full percentage point by the end of 2015.
Mortgage interest rates, naturally, have a significant impact on your monthly mortgage payment. Waiting to purchase will make our monthly payments more expensive - perhaps to an unaffordable level.
3. You'll be making a payment either way
Whether you own or rent, you will be making monthly payment towards your housing, with the mortgage payment being most advantageous. Here's how a paper from the Joint Center for Housing Studies at Harvard University details this:
“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.”
4. It's time to make a change in your life
Owning a home is predominately determined by the cost of the home and the current mortgage rate, to be certain.
But if these weren't the factors, what would your reasons be for owning a home?
Take a look at these reasons and decide if it is really worth waiting. Maybe you are looking to live in a better neighborhood, gain an extra bedroom to finally start your own business, diversify your investment portfolio, start a family, have more control over your renovations... the reasons are different from person to person.
Buying sooner rather than later will yield substantial savings - and you can get on with your life. Maybe 2015 is the right year to move on with your life.
Need guidance? Have questions for us? Don't hesitate to send us an email or give us a call! We would love to help.
