Are you thinking about buying a house, apartment or condo? In many markets, buyers are discouraged by a strong sellers market, but in this post, we’ll share a few reasons why the conditions are right to jump into the market and buy a new home.
Interest Rates Are Heading Up
If you’re like most home buyers, you’re probably looking for a mortgage with at least a 15 year term, or more likely a 30 year term. If so, 2017 could be an opportunity to lock in an interest rate we won’t see again in our lifetime. Rates are up from early 2016 and 2015, but they’re still near historic lows, so locking in a rate today could pay dividends for years to come in thousands of dollars saved.
Many ‘Sellers markets’ are Softening
Many markets have been rough on buyers for the past couple of years with multiple offers, short inventory, and rising prices all causing a headache for people buying a home. Many of the most competitive markets have softened some, though, and inventory is expected to increase which should lower the competition further. In addition, many mortgage companies have created programs to help buyers in a competitive marketplace, so working with the right lender can be a benefit in getting an offer accepted without breaking the bank.
You’ll Start Building Real Net Worth
Of course, one of the best parts of buying a home is that it’s a significant financial investment. Properly maintained, your home should continue to increase in value over time with appreciation. As you continue to invest in upgrades and renovations, you’ll build more and more equity that can be used as leverage for additional credit or just pocketed when you eventually decide to sell. Even though every market has its ups and downs, owning real estate is a far greater path to prosperity than renting. Once you factor in things like tax deductions for interest and real estate taxes, it makes owning VS renting a no brainer for most people.
When you’re ready to get into the market and find your dream home, please reach out to your Mason Mac Loan Officer to get started.