It’s hard to believe that it’s June already! That means 2017 is halfway over! If you’ve been on the fence on whether or not you should buy a home this year, the answer is a firm YES! In our professional opinion, you should be buying as soon as possible, and here are just a few reasons why.
1. Mortgage Rates Are on the Rise
Last August, rates on 30-year mortgages bottomed out at 3.55%, but things are taking a turn. Since the Federal Reserve finally decided to raise its key interest rate, mortgage rates have been climbing slowly. Today, the average rate is just above 4%; by 2019 or 2020, rates could easily climb to 6%. So if you are able to get into the market at these lower rates, you definitely should.
2. There Are Fewer Homes on the Market
According to a study by the National Association of Realtors, in November 2016, there were only 1.85 million homes for sale. That’s almost a 10% drop from the year before, and it’s continuing a trend of stead decline. The inventory of homes for sale is predicted to continue shrinking for the foreseeable future. That means if you decide to buy this year, you will have more homes to choose from now then in a few more months! So to but it bluntly, the longer you wait to start looking for a new home, the stiffer your competition will be for fewer homes.
3. Home Prices Are on the Rise
The currently economy coupled with the basic law of supply and demand has seen home prices skyrocket! In fact, home prices are now higher than they were before the housing crash of 2007, increasing 5% from 2015 to 2016, and predicted to keep rising 2% to 3% this year alone. How high prices will rise and how long they’ll remain high is anyone’s guess, but if you buy a home before 2017 ends, you could be saving yourself some big bucks!