This is the year you are going to buy a home. The excuses are all null and void as we enter 2016. Now is the time to seek out an experienced, local professional to help you find the home of your dreams. Below you will find four compelling reasons to stop procrastinating. It is time to take the plunge. 2016 is the year for first time home buyers, home buyers looking to expand and retirees looking to consolidate because the conditions for both home buyers and home sellers are ideal.
Lower Than “Normal” Mortgage Rates
Mortgage rates have been continuing to teeter at all time lows for quite some time now; they are likely to start inching up. It is important to remember however that even if rates do begin to rise they are still at an all time low over the rates that our parents experienced when buying their first homes in the early eighties. Mortgage rates on average have been at or around four percent throughout 2015 where as our parents were experiencing mortgage rates in the high teens in late 1981.
Consistent Home Prices
Home values have been rising steadily over the past few years. This pace is said to start slowing a bit in 2016. Rates, according to Svenja Gudell, Zillow’s Chief Economist are expected to rise around three point five percent over the course of 2016. Buyers who were hoping to time the market will not see the low prices and foreclosures of the far past but will see prices stay consistent. With consistent home prices and the job market and wages on the rise the market is perfect for first time home buyers to jump in!
More Homes Listed on the Market
Sellers are also excited to hit the market as the equity in their homes will start to slow. This will cause more homeowners to list their homes as they will be anxious to see the return on their investment and are ready to upgrade. The market is perfect for buyers looking to take the equity in their current homes and reinvest it into a larger home or perhaps a home with more recreational appeal.
With a boost in starter homes hitting the market bidding wars will be almost nonexistent, home prices will be fair throughout the market and the process of finding and buying a home could be simpler than ever.
Rent Payments Are Expected To Continue To Climb
The cost of renting a home or apartment is expected to continue to rise. This means that for many people buying a home could in fact be less expensive than renting. Mortgage rates are currently a bit above four percent. In order to make renting a better deal than buying the mortgage rates would have to rise to over six and a half percent. Economists agree that this is unlikely given the rates we have been experiencing. A slight increase in mortgage rates is to be seen but is not expected to grow to past five percent; thus allowing the purchase of a home buying a home to be more affordable than renting.
Now get up off the couch and reach out to a local realtor. 2016 is the year that you begin investing in the real estate market. Take advantage of all of the wonderful benefits of being a homeowner.
Lady of the Lakes Real Estate is Livingston County's premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.