It’s that time of year; the seasons are changing and with them come
thoughts of the upcoming holidays, family get-togethers, and planning
for a new year. Those who are on the fence about whether or not now is
the right time to buy don’t have to look much further to find four great
reasons to consider buying a home
now, instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index
reports that home prices have appreciated by 6% over the last 12
months. The same report predicts that prices will continue to increase
at a rate of 5.4% over the next year.
The Home Price Expectation Survey
polls a distinguished panel of over 100 economists, investment
strategists, and housing market analysts. Their most recent report
projects home values to appreciate by more than 3.5% a year for the next
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Remain at Historic Lows
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained at or below 3.5% for 13 consecutive weeks. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.
increase in rates will impact YOUR monthly mortgage payment. A year
from now, the percentage of your income that you spend on housing will
increase substantially if you choose to wait.
3. Either Way You Are Paying a Mortgage
should realize that, unless you are living with your parents rent-free,
you are paying a mortgage - either your mortgage or your landlord’s. As
a paper from the
Joint Center for Housing Studies at Harvard University explains:
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 Move on with Your Life
‘cost’ of a home is determined by two major components: the price of
the home and the current mortgage rate. It appears that both are on the
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 you want to have a great place for your children to grow up, you
want your family to be safer or you just want to have control over
renovations, maybe now is the time to buy.
If the right
thing for you and your family is to purchase a home this year, buying
sooner rather than later could lead to substantial savings.