Reasons Why You Should Buy Your New Home Before Spring
If you are planning to get a home but were intending to wait until spring, here are a few reasons why it’s best not to wait and to purchase your new home now. With predictions of mortgage rates, interest rates and fewer homes on the housing market, it is best to take advantage of the current rates and prices and save a lot on the home of your dreams.
The number of homes on the housing market is declining
One of the main reasons why you should get your new home now rather than wait for spring is that the home supply on the housing market is shrinking. With the housing market improving steadily and the regulations which make new home purchases more affordable, there are less and less homes on the housing market. It is a well-known fact that the best homes sell first, so if you wait until spring you might not have a lot of homes to choose from.
Home prices will appreciate in the following years
Experts predict that home prices will rise by up to 25 percent in the next three years. What this means is that should you decide to wait until spring, chances are that you will pay more on the home purchase in addition to paying higher mortgage and interest rates.
Owning your own home and saving money
It is also well-known that owning your home is a lot better than renting one. Why would you want to pay for the mortgage of your landlord when you can actually pay for the mortgage on your own home? In a recent study, the Fed has shown that the average home owner has a net worth of over 30 times greater than someone who pays rent. So you won’t just be able to save money on the home purchase due to still low home prices, but also stop paying rent for someone else’s mortgage.
Interest rates are predicted to rise
Not only home prices are predicted to rise in the following years, but interest rates as well. Freddie Mac and Fannie Mae and the National Association of Realtors have predicted that interest rates on home mortgages will probably exceed 5% by the same time next year. What this means is that, if you don’t get your home now, you might have to pay up to one full point more compared to current interest rates.
You can make a profit by buying low and selling high
If you are not planning on staying long in your next home, then now is a great opportunity to benefit from the low home prices of today with the possibility of selling it for a greater price in the following years. You can buy low and sell high and make a profit for your family while also strengthening your financial future if you get your new home now.
So don’t wait until spring, purchase your new home now and benefit from the still low home prices, mortgage rates and interest rates.