January 25th, 2018
A recent report by independent mortgage insurer Arch MI predicts housing prices will rise 2 to 6 percent nationally in the next two years, particularly for starter homes.
So those waiting for a cool off in the housing market will likely find just the opposite, making right now the best time to buy.
Plus, experts think the Federal Reserve could start to raise interest rates more steeply due to low unemployment and the economic growth expected from the new tax bill.
“Both interest rates and home prices are set to increase, hurting affordability. This will affect potential first-time homebuyers, largely Millennials, the most,” according to Ralph DeFranco, the global chief economist at Arch MI. “Those willing and able to make the jump from renting to owning should do so sooner rather than later.”
The firm’s Housing and Mortgage Market Review puts Maine in the low-risk category, meaning prices are likely to keep going up. Home prices in Maine grew 5.7% in the last year, up from 4.8% the year prior.
“This means the inventory of single-family homes for sale will continue to be tight in most markets,” DeFranco writes.
To read the rest of the Arch report, visit https://mi.archcapgroup.com/Portals/1/Documents/hammr/HaMMR_Winter2018.pdf