If you have the goal of homeownership in 2015, take note that the market has never been so
ready for you! Upon reading the following (4) explanations below, you’ll see why you don’t
want to wait any longer.
1. As Time Passes, Prices will Rise
Recently a panel of over 100 renowned housing market analysts, investment strategists and
economists completed The Home Price Expectation Survey. Their findings show the
appreciation in home values over the next five years to be between 11.7% (most pessimistic) and
27.5% (most optimistic).
Simply said bottom dollar days of home prices are a thing of the past- waiting just doesn’t make
sense anymore. The bottom in home prices has come and gone. Home values will continue to
appreciate for years. Waiting no longer makes sense.
2. More than Likely Mortgage Rates will Continue to Rise
While the Primary Mortgage Market Survey by Freddie Mac reflects the softening of 30-year
mortgage interest rates, many industry professionals are indicating there will be a rise in them
over the next year. The increase of rates by almost a full percentage point is what the Mortgage
Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are all
projecting.
As you can surely expect, your monthly mortgage payment will be impacted by rate increases.
This can most certainly dictate how much house you’re able to buy and the location as well.
3. Whether you Rent or Buy, You are Still Paying a Mortgage
The Joint Center for Housing Studies at Harvard University in a recent paper 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.”
4. Get Going with Your Life and Live Out your Dreams
Both the current mortgage rate and the price of the home are the factors in determining the true
‘cost’ of a home and both are increasing.
Think through if now is the time for you to buy- maybe it means you can establish a great place
for you to create memories with your family or you can live in an area that is more convenient to
your office and activities. It could also mean you could have the opportunity to renovate or build
the home of your dreams.
Upon thinking the details through, if you decide your family is ready to buy, it could most
definitely be financially rewarding to do so in the near future.