27 Dec 4 Reasons to Buy a Home This Winter!
Jeff Anderson and the Anderson team have seen the market trends over many years and for many instances the winter is the best time to buy. It is a given that there will be more homes to see this spring but there also will be an enormous buyer pool coming into the market that increases demand, creates multiple offers and drives up prices.
Here are a number of other reasons to look at buying now…
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.0% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. If you can find the home you are looking for now waiting will only add to the cost.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by this time next year. The federal reserve just last week stated they are raising rates and will continue to do so in 2018.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home. As an example if rates go up to 5% you will be able to purchase 25% less house for the same payment.
3. Either Way, you are Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Also, you have a small amount of money that is securing a large investment in so your return on investment is calculated on the appreciated value of your home but you only have a small home downpayment to get that large return. In addition you have the benefit of writing the interest off your taxes
4. Seller’s typically are more motivated in the winter season
With less buyers and longer marketing times in the winter the seller’s tend to be more motivated to negotiate and this could also lead to savings. The likely of multiple offers also is less.
Any savings gives you a smaller mortgage payment and more money in your pocket.
5. 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 if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.
In conclusion there are many good reasons not to wait until spring and realize the savings this could mean to you. Ask Jeff for his opinion for the areas and price range you are interested in.