If you’re even thinking about buying a home then there are a few things you need to know about. First of all the cost of rent is dramatically going up in many parts of the country and some areas are seeing record breaking increases. Although this alone may not be enough to consider making the move into your new home (if you currently rent) there are other factors that are making now an opportune time to buy for almost every situation.
Housing inventories are continuing to shrink in many areas and if you wait too long to find your dream home it might be a lot more difficult than it is right now. Housing prices are expected to increase dramatically and as early as 2018 home seekers may be looking at an average increase in cost of as much as 25%. While that’s great news for sellers it is terrible news if you are in the market for a new home. A home that is on the market today for $200,000 would cost $250,000 at an increase of 25% and a $400,000 home would increase as much as $100,000! That’s a big difference to pay for the same home.
You are paying a mortgage whether you realize it or not! What do I mean by this? If you are renting than you are still paying a mortgage. The difference is that you are paying the landlord’s mortgage instead of your own. Regardless of what changes may occur in the housing market is this ever a smart idea?
Experts insist that interest rates will rise again by the end of this year. This prediction comes from those “in the know” including the National Association of Realtors, Fannie Mae, Freddie Mac and the Mortgage Bankers’ Association. The average 30 year mortgage is expected to be over 5% and that is definitely higher than today. 30 years is a long time to pay more than you might have if you had acted sooner. Taking advantage of the low rates now being offered is a wise decision that will reward you for many years to come.
One last point to consider; the average homeowner has a net worth that is 30 times greater than that of those whom chose to rent. Real estate is and always has been one of the most stable and reliable investments that anyone can make and with the cost of housing soon to increase now is the perfect time to get into your next home. If you have questions I am here to help. Don’t wait until you can’t afford to buy what you really want.