The signs are all pointing to a great real estate year in 2015, and this first quarter hasn’t disappointed. Look at some of these facts:
- Traffic is continually up at new homes sites according to Residential Data Bank
- Foreclosure filings are down double digits
- Home sales are up almost 3% from last year
- Interest rates are still low
- New Homes sales are at the highest levels since 2008
If you’ve been on the fence about jumping into the market here are four key reasons why now is the time to act and not wait.
1. Prices Will Continue to Rise
The Home Price Expectation Survey polled a panel of 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 11.7% to 27.5%. Many industry leaders believe that the bottom for the housing market has come and gone, smart home buyers will take advantage before the prices go up.
2. Mortgage Interest Rates are Projected to Increase
Within the next 12 months, mortgage industry experts believe that interest rates will rise. An increase in rates will impact your monthly mortgage payment because it lowers the actual amount of property you can buy. Take a look at these graphics from Keeping Current Matters.
The combination of price increases and mortgage rate increases means that the buying power for some will be limited. Taking advantage of lower interest rates and housing prices makes financial sense.
3. If You’re Paying Rent You’re Still Paying a Mortgage
If you have a roof over your head and write a check to a landlord – you’re paying a mortgage just his and not yours. There are many benefits to being the owner of the home you’re living in, according to Advance Financial Group Loan Officer Bill Weakley. These include:
- Tax credits and deductions
- Investment in personal wealth building
- The ability to change decor and features without having to ask permission
We’re not the only ones who agree, a paper from the Joint Center for Housing Studies at Harvard University says:
“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 principle 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.”
4. It’s Time to Move On with Your Life Goals
According to the 2014 Generations Report from the National Association of REALTORS, 30% of people surveyed said they wanted to buy a home simply because they wanted to have a home of their own. Owning your home home has many financial incentives, but the fact is there is a sense of pride in owning property. Plus, it’s an excuse to do all those Pinterest projects you’ve been pinning the last few years.
If you have other reasons why now is a great time to buy a home, we’d love to hear about them. And to begin your home search check out RoseandWomble.com.