The real estate market is seemingly changing by the day, and if you want to get a great home for a great price, making a move now is in your best interest; conditions a year from now (or even six months from now) aren’t likely to be as hospitable.
And why is that? Why shouldn’t you, if you’re interested in buying a home, wait? Why is NOW the time to make a move?
1. Interest rates won't stay this low
The first reason you should buy a home now is that interest rates are extremely competitive. They are scheduled to rise at least 3 times in 2018, with many experts predicting the interest rate for a 30-year fixed mortgage to reach 5% by the end of 2018. Locking in a lower interest rate on your mortgage will save you tens of thousands of dollars over the course of your loan, which is why securing a loan now is in your best interest.
2. Competition is getting fierce
Another reason is that housing markets are growing more competitive every day. Now that much of the country has recovered from the recession, more and more people are in the position to purchase real estate, and the more people there are on the market, the more competition there is for homes. The competition in most real estate markets is still manageable and deals are still to be found, but as the economy continues to improve, the competition will heat up even more – making finding and buying the home of your dreams significantly more challenging (not to mention expensive).
3. Home are getting for expensive by the day
As of June 2017, home prices have been rising every single month for well over 5 years. Experts predict home prices will jump up to 5% more in 2017 and another 3.5% in 2018, which means that if you purchase a home at the end of 2018, you can expect to pay an average of 8.5% more than you would pay today.
4. There are fewer to choose from
One of the factors in rising home costs is low inventory. When there are too many people who want to buy homes and not enough homes for them to buy, it drives up prices and competition in the market. We have a huge problem with low inventory now, but unfortunately, that problem doesn’t have a simple solution; as interest rates rise, people are less likely to put their homes on the market in an effort to preserve the lower interest rates on their mortgages.
Buying a home is a big decision. But if it’s a decision you’re considering, now’s the time to make a move. You’ll enjoy lower interest rates and an overall less expensive experience today than you will if you wait.
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