Buying a house is a highly individual decision—and a local one—but current trends are creating a favorable situation for many would-be homeowners.
Interest rates are low, employment is rising, home prices—in most markets—are still well below their peaks, and rents are through the roof.
(Remember, a local REALTOR® always is your best resource in helping you assess market conditions.)
Five Compelling Reasons to Buy a House Right Now
Interest Rates Are Still Low
Mortgage interest rates are still low—for now.
A 30-year-fixed-rate loan now averages 4.16%, according to Freddie Mac, but many economists believe we will see 5% rates next year. As interest rates increase, so do your monthly payments.
A $300,000 house at 4.16% with 20% down would have a monthly payment of $1,168. With a 5% interest rate, that payment increases to $1,288.
There’s More Inventory
As more houses enter the for sale market, prices stabilize. In many markets inventories are currently at their highest level for the entire year. Buyers have more choices now, especially if they are considering existing homes.
Home Prices Are Going Up
Home prices are rising.
The median price of an existing home was $223,300 in June, or 4.3% higher than June 2013. That’s the 28th consecutive month of year-over-year price gains, and economists expect that trend to continue. However, we are still at least 20% off the peak prices of 2006.
Rents Are Sky-High
Nationally the reports indicate that many people are spending 42% of their monthly income to pay rent and rents are rising at a 4% annual clip! It’s not unusual to see adults rooming together just to make ends meet.
Buying a home would lock in your monthly payment and stabilize your finances with a fixed-rate mortgage. (If you’re renting and never thought you could afford to buy a house, contact us and let's talk to see what’s possible.)
Employment on the Rise
Perhaps nothing is as important to the financial stability you need to buy a home as steady employment. The U.S. economy is finally adding jobs—about 200,000 new jobs per month.
The next generation of home buyers—the millennials—has been particularly affected by the nation’s job slump. Saddled with student loans and tight lending restrictions, many in this generation have been living with their parents to save money until the economy picks up.
If your employment prospects look good these days and the other four factors check out, then it may indeed be the right time for you to buy a home of your own.
Helping your find your home is our goal,
Getting you through the process is our expertise!