Many buyers are hesitant to enter the housing marketing in the winter season. Here are some reasons you should consider buying now, rather than waiting.
Prices are on the rise
Prices have been increasing over the last 12 months. According to the Home Price Insight report by CoreLogic, home prices have appreciated by 5.6%. It is also predicted that home prices will continue to appreciate at a rate of 4.7% over the next year.
Home prices have already reached the lowest point, and now are on the rise. Home prices are expected to continue to increase. The longer you wait to start the home buying process, the higher the home prices will be.
Mortgage interest rates are expected to increase
Interest rates for a 30- year mortgage have stayed around 4.8%. Many experts are predicting a rise in these rates over the next 12 months. An increase in mortgage interest rates impacts your monthly mortgage payment.
A few months, or a year from now, your housing expenses will increase when you buy your new home.
Whether renting or buying, you are paying a mortgage
Many renters haven't bought a home because they are trying to avoid taking on a mortgage. When you rent a home, you are paying your landlord's mortgage. Either way, you are either paying your mortgage or someone else's.
When you buy a home, your mortgage payments allow you to build equity. You can tap into these savings later in life. As a renter, you are building your landlord's equity.
It's time to buy
The cost is determined by both the price of the home and the mortgage rate. Both of these components are on the rise.
Each person has their own reason to want to buy a home. Is it worth waiting and letting costs increase? Now is the time to buy.