4 Reasons to Buy Your Dream Home This Winter
The holiday season may appear to be less than optimal for home buying and selling however there are some benefits to house hunting and selling during this time of year.
- Less competition in searching for your preferred home
- List prices may be more negotiable
- Sellers are motivated
- Interest rates are traditionally lower during the holidays
Source: Keeping Current Matter
As the temperature in many areas of the country starts to cool down, you might think that the housing market will do the same. This couldnt be further from the truth! Here are 4 reasons you should consider buying your dream home this winter instead of waiting for spring!
1. Prices Will Continue to Rise
CoreLogics 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 years. Waiting no longer makes sense.
2. Mortgage Interest Rates are Projected to Increase
Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure.
Freddie Macs Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently at 4.08%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time 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.
3. Either Way Youre Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either yours or your landlords.
As an owner, your mortgage payment is a form of forced savings that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
4. Its Time to Move on with Your Life
The cost of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they werent? Would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.