It’s that time of year; the seasons are changing and we start thinking of the holidays, family dinners, and planning for a new year. For those who are on the fence about buying a home, here are 5 great reasons why its time to buy now rather than wait!
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.5% a year for the next 5 years.
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 Remain at Historic Lows
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained at or below 3.5% for 13 consecutive weeks. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.
Any increase in rates will impact YOUR monthly mortgage payment. A year from now, the percentage of your income that you spend on housing will increase substantially if you choose to wait.
3. Either Way You Are Paying a Mortgage
Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either your mortgage or your landlord’s. As a 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. We’re headed into a Buyer’s Market
The majority of the country is strongly in buy territory. Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year. As an example, they already increased on average from $2500 to $2600+ just in the last year for a basic 3 bedroom home in Laguna Niguel. Protect yourself from rising rents by locking in your housing cost with a mortgage payment now.
5. 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 now is the 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. Interested in your options and seeing what is available out there? Call us now at (949)395-0960!
About Jaleesa Peluso, Orange County Real Estate Agent
Jaleesa and her real estate team specialize in South and Coastal Orange County real estate. We serve buyers and sellers in all of South Orange County, including: Dana Point, Irvine, Laguna Beach, Laguna Niguel, Newport Beach, Costa Mesa, Lake Forest, Aliso Viejo and San Clemente. Thinking of making a move in to Orange County? Call us now at (949)395-0960!