Five Great Reasons to Buy a House Right Now
Buying a house is a BIG decision but the current status of the real estate market is creating a favorable situation for many prospective homeowners.
Interest rates are low, employment is rising, home prices for the most part are still well below their peaks, and rent prices are more expensive than ever.
Every family and each individual has various factors affecting the ability and the decision to buy a home.
1. Interest Rates are low, low, low
Interest rates for mortgages are still relatively low.
The average rate for a 30 year fixed loan is now averaging 4.16%.The projected rate for next year is 5%. As interest rates increase, so do your monthly payments.
2. Inventory is up, up, up
As more houses get listed, prices stabilize.
The upside is buyers now have more choices.
3. Home Prices Are Going Up
Home prices are rising.
The median price of homes has gone up about 4.3% in one year. Economists speculate that number will be rising at a rapid rate. As of right now, we are still at least 20% off the peak prices of 2006.
4. Rents Are Sky-High
If you live in a bigger city, then you know rent is outrageous. In San Francisco, many people are spending 42% of their monthly income on their rent. Nationwide, rents are rising at a rate of about 4% annually. It is not unusual to see adults sharing a home in expensive cities like New York, Miami and Chicago, Buying a home would lock in your monthly payment and stabilize your finances with a fixed-rate mortgage.
5. Employment on the Rise
Nothing comes close the importance of financial stability you would need to buy a home as steady employment. The U.S. economy is finally succeeding in adding jobs. They are adding about 200,000 new jobs per month.