4 Reasons to Buy Before Winter

    Earlier in the week we discussed that the winter months are slowly sneaking up on us and that sellers should act fast in order to take full advantage of the current market. But, the timing in the current market isn’t just poised for sellers to capitalize, it is also poised for buyers to do well as well. Those who are on the fence about whether now is the right time to buy don’t have to look much farther to find 4 great reasons to consider buying a new home now, instead of waiting. Prices will continue to rise. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next 5 years to be between 11.2% (most bearish) and 27.8% (most optimistic). The bottom in home prices has come and it has gone. Home values will only continue to appreciate for years. While waiting used to make sense, it no longer does. Mortgage rates will rise. 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 later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison projecting that rates will up almost a full percentage point by the end of next year. An increase in rates will impact your monthly mortgage payment directly. If you take out a mortgage it will cost you most a year from now than it would if you bought a house today. You are paying a mortgage regardless. As a recent 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.”

    The time is right to move on. Just like we explained with now being the right time to sell your house, the time is right to move on. The “cost” of a home is determined by 2 major components: the price of the home and the current mortgage rate. It appears that both are on their way up. But, what if they weren’t? Would you still wait if conditions remained optimal? Whether you want to have a great place for your kids to grow up, you want your family to be safer, or you just want to have control over your own surroundings, maybe it is time to buy. You see, most of the reasons for selling your home before winter is upon us coincide greatly with the reasons for buying a home before the leaves fall. So, if you are looking to buy, there simply will not be a better time than right now.

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