Why Take the Plunge & Buy a Home This Year…
If you’ve been on the fence about buying a home, 2016 is the year to take the plunge as reported in the article, 4 reasons 2016 is the year to buy a home, from www.cnn.com. Mortgage rates have been bouncing around record lows for a while now. But even though they’re likely to start going up, you haven’t missed your chance to get a deal on a house. A number of factors are coming together, making this year a good time to buy:
1. Home prices will finally calm down
Real estate values have been on the rise for a while, but are likely to slow their pace this year. Prices are expected to rise 3.5%, according to Zillow’s Chief Economist Svenja Gudell. Buyers who’ve been stuck behind the wave of rising prices may finally get the chance to jump in. And that could lead to a flood of buyers, said Jonathan Smoke, chief economist at Realtor.com.
2. More homes will hit the market
The slowdown in home prices will prompt more owners to list their homes, Smoke said, giving buyers more choice. “Because of the price appreciation they have experienced, you will have more sellers put homes on the market next year,” he said. The new home market is also expected to grow in the coming year with builders focusing more on starter and middle-range homes, which will also boost inventory and make it easier for buyers.
3. Dirt cheap mortgages could disappear
The Federal Reserve is widely expected to begin increasing interest rates soon, which means the window for record low mortgage rates is closing. “You are likely to get the best rate you will possibly see, perhaps in your lifetimes through the majority of this year, but certainly, the earlier the better,” said Smoke.
4. Rents will still hurt
Rent prices are expected to continue to climb in the new year, which means in most cities, buying will be cheaper than renting. Even though mortgages could get more expensive, buying might still be the better deal.
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