Buying a House? Four Reasons to DO IT NOW
Here are four great reasons to
consider buying a home today, instead of waiting.
1. Prices Will Continue to Rise
The Home Price Expectation Survey polled a distinguished
panel of over 100 economists, investment strategists, and housing market
analysts. Their most recent report projects appreciation in home values over
the next five years to be between 30.8% (most optimistic) and 9.4% (most
pessimistic). 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 Are
Projected to Increase
Although the Primary Mortgage
Market Survey shows that interest rates for a 30-year mortgage are
currently around 4.2%, Freddie Mac is projecting (active
link) that rates will increase to 5.2% by this time next year.
An increase in rates will impact
YOUR monthly mortgage payment. Your housing expense will be more a year from
now if a mortgage is necessary to purchase your next home.
3. Either Way, You are Paying a
Mortgage
As a research paper from the Joint
Center for Housing Studies at Harvard University explains:
“Households 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
 |
| Leslie Hanna Smitke just closed on her new house with Liz Sandwick. Make the right choice, contact Liz today! |
The ‘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 rise. 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 it is 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.
