Are you currently renting?

Are you considering purchasing a home, but are not sure if now is the right time?

Back in February, I published an article that highlighted three reasons why chief economists are saying to buy a home now. In this article, I will review those three reasons and add a fourth. This fourth reason may be the one that will finally convince you that now is the time to buy your dream home.

4 Compelling Reasons to Buy a House Now

  1. Mortgage Rates
    Chief economics everywhere are predicting that while mortgage rates are low today, they will likely not be tomorrow. predicts that affordability for home purchases could decline as much as 10%.

    CNN Money reported that the Feds patience is failing, and we could see an increase in interest rates as soon as June.

    While it may not seem that an interest rate increase could make that big of a difference in affordability, it can. In my article, Low Mortgage Interest Rates and What You Need to Know, I explained what the difference of a 1% change could make.

    For a loan of $300,000 with a 20% down payment, there is a big difference between a 4.5% interest rate and a 5.5%. How much difference? Over the course of a month, that difference is about 40 Starbucks Grande Caffe Lattes.
  2. Decelerating Housing Prices
    Forbes is predicting that the rebound in housing prices will decelerate this year. They reported that Zillow is predicting an increase of approximately 2.5% in home prices this year.

    What that means is that for most of the country, the home values are back to where they were in 2005 and they are likely to stay close to those figures.
  3. Job Growth
    Job growth has increased. Gas prices are down. Foreclosure rates have dropped. Consumer confidence is up. The housing market has finally returned to a healthy shape. predicts that the pace we are creating jobs this year hasn’t been seen in 15 years.
  4. Increasing Rents
    Nationwide, rents have increased 15% from 2009 to 2014. At the same time, the realtor group [National Association of Realtors] estimates that household income has gone up just 11%. - CNN Money

    Detroit, Michigan was included among the 70 metro areas that were tracked by the National Association of Realtors. Detroit, however, is only one of four cities where income has outpaced rent. This year that may change.

    Recently, CNN Money reported that rent will be rising. It can be hard to justify renting when you could own your home.

    The biggest problem with high rents is the difficulty in saving for a down payment. The good news is now there are new mortgage programs that require only a 3% down payment.

Take Away

These compelling reasons do not just make right now a great time to buy a home, but also a great time to sell your home. If you would like to start your search now, please see, How to Start Your Search for Your Dream Home and call our office today.