While the market has clearly shown great rebound potential over the last year, many prospective homebuyers are still hesitant to wade into the marketplace. Many aren’t sure if they should be buying just yet; however, as the old adage goes, “Timing is EVERYTHING!” Plain and simple, now is absolutely the right time to begin the hunt for a new home!
1.) MORTGAGE RATES WILL RISE: While they haven’t made a huge jump as of yet, those interest rates have slowly begun to creep skyward and with federal changes taking place later this year, you can rest assured that the current rates will not stay low for long.
2.) FEDERAL RESERVE SUPPORTS WILL END: While the Federal Reserve doesn’t plan to forfeit their support of mortgage rates as of yet, the President’s office is pushing for them to pull out of the market, so changes are certainly on the way.
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3.) HOME PRICES ARE INCREASING: As the economy has begun to revitalize, so has the seller’s market. Buyers looking to cash in on a great deal need to act fast!
4.) FHA INCREASING COSTS: In an effort to boost the FHA Reserve Fund that took a beating during the housing crash, lawmakers have raised mortgage insurance premiums, while lenders have raised credit score requirements.
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5.) HOME SALES ARE INCREASING: As the seller’s market has worked its way up, those increases have created a demand for homes, which makes it more difficult for buyers who would like a larger selection.
6.) RISING RENTS: While many previous homeowners became renters when the market crashed, it should come as no surprise that rental rates have grown about 3% each year. By taking advantage of the affordable homes on the current market, those looking to buy will truly benefit in the long-run.
7.) MORTGAGE-INTEREST DEDUCTION: While many lawmakers have suggested that deductions need to either be reduced or scrapped all together, they’re still in play and should be taken advantage of.
8.) INCREASED AFFORDABILITY: The National Housing Affordability Index has predicted the third highest reading on record for 2014. In other words, now is a great time to buy since mortgage rates and home prices have yet to rise.
9.) DELINQUENCIES HAVE BEGUN TO WANE: With the continued decline of mortgage delinquencies, home prices have begun to stabilize, which has increased the confidence of those looking to purchase.
10.) DESIRABILITY IS BACK: As people have begun to feel more secure in their jobs, housing prices have stopped falling and home sales have actually picked back up!
