Now is a Great Time to Buy a Home, But Will Not Last

Now is a Great Time to Buy a Home, But Will Not LastNow continues to be a great time to buy a home. Interest rates are still at historically low levels, and job growth has continued to improve. However, we agree with the recent KCM article that we can't expect these levels to last for much longer.

Prices and interest rates to see increases

Both prices and interest rates are projected to increase. The National Association of Home Builders and the National Association of Realtors both take detailed looks at the affordability of purchasing, and measure it over time in their respective indexes (the HOI and the HAI.)

Both indexes are in agreement - the cost of buying a home is now beginning to increase, which will steadily decrease affordability.

NAHB's chief economist David Crowe explains:

The second quarter HOI reflects the slow but steady march toward the historic levels of price appreciation and interest rates that result in affordability levels we experienced before the mid-2000s boom.

Additionally, according to a recent report in the Economists' Outlook, home affordability is already down from one month ago and from one year ago in all regions.

What does this mean for prospective homebuyers?

The time to act is now. All of the most current data continues to point to a decrease in affordability for all homes in all regions. If you've been on the fence about buying a home, know that waiting another year could very well make the difference between being able to afford you dream home and it being just a little too far out of reach.

If you're interested in specific projections for your own situation or have any questions for us at all, don't hesitate to send us an email or give us a call! We'll be happy to help you make a decision that will work best for you.

Real Group Real Estate

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