If you are planning
on becoming a homeowner, or moving up to the home of your dreams in 2015, here
are four great reasons to consider buying a home now, instead of waiting until
spring.
1.
Prices Will Continue to Rise
The bottom in home prices has come and
gone..
Home values will continue to appreciate for years. Waiting no longer
makes sense.
The
projected appreciation in home values over the next five years is expected to
be between 11.7% (most pessimistic) and 27.5% (most optimistic).
2.
Mortgage Interest Rates Are Projected to Increase
An increase in rates will impact
YOUR monthly mortgage payment.
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 over the
next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac &
the National Association of Realtors are in unison projecting that rates will
be up almost a full percentage point by the end of 2015.
3.
Either Way You are Paying a Mortgage
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.
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, better schools, need more elbow room, or you
just want to have control over renovations, and paint color - maybe it is 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.
-Picture it Sold
