Why You Should Buy Soon
Many people spend the early part of the year and summer looking for homes to transition to while the weather is warmer, or while children are out of school, etc. This year has been the best we've seen yet in real estate and the market is projected to keep growing. This means home prices around the country (especially in New York City) will rise with a competitive seller's market. Most people aren't thinking of buying a home right now because of upcoming holidays, school semesters and planning for the new year, but data suggest you should consider a big financial move soon.
- Home prices will continue to rise.
The prices of homes have appreciated 6% over the last 12 months according to the Home Price Index by CoreLogic. They also report that homes should continue to appreciate at around 5.4% for the next year. People are holding on to their properties and watching their equity rise phenomenally.
- Mortgage interest rates are extremely low.
Freddie Mac's reports have shown that interest rates have been at 3.5% or below for 13 consecutive weeks. Most top speculators agree that by this time (September) next year rates will increase. If you were considering buying a home later that means a larger mortgage payment and less income for you to spend or save.
- There is less buyer competition.
Since it is later in the year, most people are again focusing on holidays and meeting family members. Only serious buyers are out during the fall months, but there is considerably less buyer traffic during the winter months.
- You're paying a mortgage anyway.
Unless you're living rent-free with parents or family, you're paying for your mortgage or someone else's. In most up and coming urban areas the price of renting can exceed the price of owning a home and paying a monthly mortgage.
Home prices are projected to rise as well as mortgage rates. If this is the right time for you to buy a home then make it happen. You will save a substantial amount of money in the long term if you buy sooner rather than later!