4 Reasons to Buy a Home Before Spring
The holiday season is behind us, time to focus on what exciting new experiences 2015 can bring!
If you are planning on becoming a homeowner, or moving up to the home of your dreams in 2015, here are four great reasons to consider buying a home now, instead of waiting until spring.
1. Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 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 15.1% (most pessimistic) and 32.8% (most optimistic). What do home prices typically do this time of year in the St. Louis area?
The Buy Zone
The chart above is very typical of what happens in the St. Louis real estate market year after year.
The market takes a dip towards the end of the year and through the holidays and prices start to rise in early spring. The question is: Can you snag a home before price increases kick in?
2. Mortgage Interest Rates Are Projected to Increase
Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of 2015.
3. Either Way You Are Paying a Mortgage
As a paper from the Joint Center for Housing Studies at Harvard University explains:
“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 principal 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.”
See Our Article Renting is Now More Expensive than Buying in St. Louis
4. 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 whether 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 it is time to buy. See How Asking the Right Questions of Yourself Can Determine if You’re Ready to Buy a Home
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Call Finding Homes for You today at 636-532-4200 and let us help kick start your search and find your next home. Remember we work for you the buyer only!