Why Buy NOW?
By Whitney Lloyd
Now is the time to make the smartest financial decision to get off the sidelines and BUY a home. You have all watched your family, friends and neighbors move into new homes and aren’t you curious as to why they are ALL doing it? Here is all the information you need to make your move.
- Increased Rental Rates
With the on-going low supply and high demand of rental units, rental rates are continuing to rise. In the last 12 months, 88% of property managers have raised their rent prices. Rent has been increasing faster than home prices, causing rental households to spend more of their income on housing than homeowners. According to recent data, the average renter spends 30% of their income on housing costs, while the average homeowner spends just over 15%.
- Interest Rates are LOW
Low interest rates make home buying more affordable. While home prices are high in some markets, the savings in interest payments could easily amount to hundreds of thousands of dollars over the life of the mortgage. Lenders show little change in the 30-year fixed-rate mortgages which hover right around 4%.
- Prices are rising
Those who purchased a home a year ago basically got their first year of ownership free. November 2015 showed a 5.1 increase in pricing, according to Case-Shiller. As prices continue to rise, more and more people are realizing the time to buy is now.
- Down Payment Options
Writing a check for a down payment on a home is one of the largest investments we will make. Having down payment options is a new concept that can give modern homebuyers the flexibility they need to more confidently and securely buy a home. When homebuyers put less than 20% down at closing, it limits the amount of cash out of your bank.
However, the current state of the market and these major mortgage changes will help to ensure that when life happens, the homebuyer won’t be completely out of luck when it comes to protecting their nest egg.