Four Reasons to Buy Before Winter
It's
that time of year, the seasons are changing and with them bring thoughts of the
upcoming holidays, family get-togethers, and planning for a new year. Those who
are on the fence about whether now is the right time to buy don't have to look
much farther to find four great reasons to consider buying a home now, instead
of waiting.
1.
Prices Will Continue to Rise
The
Home Price Expectation Survey polls a distinguished panel of over 100
economists, investment strategists, and housing market analysts. Their most
recent report released recently projects appreciation in home values over the
next five years to be between 11.2% (most pessimistic) and 27.8% (most
optimistic).
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
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a
30-year mortgage have softened recently, most experts predict that they will
begin to rise later this year. The Mortgage Bankers Association, Fannie Mae,
Freddie Mac and the National Association of Realtors are in unison projecting
that rates will be up almost a full percentage point by the end of 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 recent 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
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.
Bottom Line
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.
