February 20th, 2014
With the lull that comes after the busy holiday season, potential homebuyers assume that it’s not a great time to shop, and they should instead wait until spring.
But in a blog post, the real estate team at Keeping Current Matters explains why now is the right time to buy, rather than during the spring and summer rush.
Supply is shrinking
Inventory is declining in many regions, and the best homes in the best locations are selling fast. Looking now, during the market’s slow time, increases the chances you’ll beat out competing shoppers to find the home of your dream.
Price are likely to increase
Home prices are projected to appreciate by more than 25 percent from now to 2018, so first-time homebuyers will likely pay more in price and interest as time goes on.
Owning a home creates wealth
The federal government in a recent study found that the net worth of the average homeowner is 30 times greater than that of a renter. Keeping Current Matters points out that whether you rent or own the home you live you, you are paying the mortgage. So why not own and actually have something to show for your hard-earned money?
Interest rates are expected to rise
The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be more than 5 percent by the end of 2014. That is an increase of almost one full point over current rates.
Make money in the long run
The guiding principle of investing is buy at the lowest price possible and sell at the highest price possible, thus getting the largest return. Real estate is now selling at the low end compared to what it will be later this year.