The housing market, unlike our temperatures, does not cool down in winter. In fact, it’s a great time to buy (and sell) your home. In the case of buying, delaying can cost you money! Here are 5 reasons why you should seriously consider buying your home this winter, instead of waiting for spring or summer:
1. Prices Will Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year. The bottom in home prices has come and gone. Home values will continue to appreciate for many years. Waiting makes no sense and the money you may be giving to a landlord, you can put to better use paying off your own mortgage.
2. Mortgage Interest Rates are Likely to Increase
Your monthly housing cost is not only related to the price you pay for your house, it also heavily depends on your mortgage interest rate. Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage right now are at 4.08%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are all forecasting that rates will increase next year. An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home. Buying now and locking in a good mortgage rate may be a way to insure a great rate for years to come, and not having to worry about the rising rates in the future.
3. You’re Paying a Mortgage Anyway!
Many renters rent because they feel uneasy with the idea of a mortgage, and the obligation it entails. Fact is that even if you don’t own a house, when you are paying rent you ARE paying a mortgage: the landlord’s. However, if you own your own property, the mortgage payment acts as a form of ‘forced savings’ allowing you to have equity in your home that you use later in life. As a renter, the only person who benefits from it, and enjoys the equity, is your landlord. You can put your housing costs to work for YOU by purchasing a home.
4. A Change Is Always Good
The ‘cost’ of a home is determined by the price of the home and the current mortgage rate. Both are on the rise, so it makes sense to buy sooner rather than later. But what if they weren’t? Why wait? There are many more great reasons for owning a property, such as long-term security (not just from lease-to-lease), having control over renovations, a yard and more space for your children, or just ‘a place to call home’. Most of all, it feels different owning your own house as opposed to renting a property. Maybe now is the time to buy – for you!
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.
If you are looking for a property in Greater Fort Lauderdale, it would be my pleasure to help you.