When you consider today’s historic low interest rates and the affordable prices of homes in many parts of the country, it’s obvious that it’s a great time to make your new real estate purchase.
Be warned: The good times aren’t going to last. In fact, predictions from the National Association of Realtors say that home sales are going to heat up in 2017. NAR predicts existing home sales will reach 6 million next year, an increase from this year’s forecast of 5.8 million. But this is on the low end of the predictions.
And NAR isn’t the only organization predicting this change. The Mortgage Bankers Association, Fannie Mae, and Freddie Mac are all saying that home sales are going to climb next year. Wow! Sounds like a good thing, right? Well, if you’re looking to buy a new home, maybe not so much.
You see, when home sales climb, the number of available, desirable homes decreases. And when there’s more demand than supply, prices rise. Which means home prices could be climbing all over the country. Which also means the best time to buy is NOW.
The Cost of Renting
Once upon a time, people rented homes because they couldn’t afford to buy. But since the recession, renting has been on the rise — and so are rental rates. It’s actually more economical to own in most areas of the country than it is to rent. The influx of renters into the market has driven demand sky-high, and costs are shooting up while availability is declining. (Hmm, sounds like what will soon be happening with the housing market, right?)
Opportunity Is Knocking
So when you look at interest rates and housing prices, toss in skyrocketing rents and the availability of homes to buy versus homes to rent, you can see that now looks like the right time to make a move. Nationwide housing affordability, as measured by NAR, has already dropped since the beginning of this year. How much further will it drop — how much less affordable will houses become — in 2017?
There Is No Time Like the Present
Housing prices are low, interest rates are historically low, and there are still many available homes on the market. Your purchasing power is strong — don’t wait for it to decline before you decide to make that new home purchase. It can make the difference between a 3-bedroom, 2-bathroom home near a park and settling for a smaller home that needs more work in a neighborhood that isn’t your first choice.
If you are ready, I am available for a no-cost consultation to look at your options and help you decide what real estate purchase works best for you, your family and your financial situation. Contact me today to discuss making your move — before a new home is out of your reach.
Note: if you are looking for purchase home loan , or refinance look no further we specialize FHA Mortgage, Conventional home loan, Private Money. We have the office in Stockton Mortgage and Lodi Mortgage please call 209-651-2000
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