1. The Cost of Homes will Continue to Rise
Many studies show that home values are going to continue to appreciate for years now. In particular, the Home Price Expectation Survey is helpful in that it polled over 100 housing market analysts, investment strategists and economists. The results of the poll show the increase in home values to be 27.8% (highest amount) and 11.2% (lowest amount) over the next (5) years.
2. Projections Show that Mortgage Rates are not Decreasing
By the end of 2015 Freddie Mac, Fannie Mae, the National Association of Realtors and the Mortgage Bankers Association are all estimating that rates will increase close to a full percentage point. Obviously your monthly mortgage payment amount increases as a result, so it’s a great time to buy and have a lower monthly payment.
3. Whether You Rent or Own You are Paying for Housing
Harvard University has a recent paper from the Joint Center for Housing Studies that states: “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.”
4. Move Forward in Accomplishing a Goal
As you think through your goals do you want to have a safer area for your family to live or do you want to be able to remodel a home? If so, it could be that now is the best time to buy. Be wise as you consider whether it’s time to take advantage of some potential savings and realize your dreams.