Whether you are considering a buying personal home, a second home, or an investment property now is the time to buy. I know you are thinking, “That’s crazy! It’s a seller’s market”. Rising home prices, low inventories, and multiple offer situations DO mean a seller’s market, but let’s go a step further and look at three reasons why NOW is excellent time to buy.
1 Interest rates.
How do you know when interest rates hit rock bottom? They will start to rise again! Right now it appears interest rates are at their bottom – according to Fannie May, Freddie Mac, The Mortgage Bankers Association, and The National Association of Realtors. In fact, Freddie Mac predicts there will be a substantial interest rate hike over the next 12 months.
So what does this mean? It means that a $400K home purchased today at 3.8% interest will cost you about $1863.83 a month. That same home purchased 12 months from now will cost you $421,600 at a predicted 4.8% interest and give you a monthly payment of $2,211.99. The difference between just 1% is $348.16 MORE a month. Over a 30 year loan you will an additional 125K for the same home! Your purchasing power as a buyer will decline with each interest rate increase.
So, based on interest rates… NOW IS THE TIME TO BUY!
2 Cumulative Appreciation
Experts in a home price appreciation survey completed in Quarter 2 of 2016 say that by the year 2020, you will see the average home price appreciate as high as 24.7%! What does this mean for a buyer? Based solely on these projections, a home purchased for $250K could be worth as much as $296K in just 5 years.
So, based on cumulative appreciation… NOW IS THE TIME TO BUY!
3 Less Competition
This is the time of year that a lot of buyers decide, “I’ll quit looking until after the holidays”, or maybe even wait until next spring. This is great news for you! When you find your perfect home, there will be less competition. Less competition means a better chance for negotiation with the seller and less of a chance for bidding wars with other buyers. It’s ALWAYS better to negotiate with a seller than compete with a buyer!
So, based on a decrease in competition… NOW IS THE TIME TO BUY!
If you are thinking of buying ,selling, or investing in real estate, call RE/MAX Town & Country today!