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Reasons to Buy a Home NOW

5 Reasons to Buy a Home Now Instead of Waiting Until Spring  Happy-Family-Sold

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to buy a home than right now. Here are five reasons purchasers should consider buying before the spring market  arrives:                                                                              

1) Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of homes to buy.  The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

2) Price Increases Are on the Horizon

Prices are projected to appreciate by over 25% from now to 2018. First-time home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.

3) Owning a Home Helps Create Family Wealth

Whether you are rent or you own the home you are living in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Fed, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

4) Interest Rates Are Projected to Rise                                                                                 Mortgage Rate Projections

The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the this time next year. That is an increase of almost one full point over current rates.

Take a look at the affect of Higher Interest Rates At Various Price Levels  – Click Chart to enlarge!

Buyer's Purchasing Power Slide 1Buyer's Purchasing Power Slide 2

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Buyer's Purchasing Power Slide 5
A 1% rise in interest rates represents nearly a 10% decrease in buying power!

5) Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.

And if the 5 reasons to buy a home now instead of Spring aren’t enough to convince you that NOW is the time to buy, here are 5 Financial Reasons to Buy A Home. Financial Reasons to Buy a Home

Need more reasons to buy a home NOW?  Call me at 631-881-5604 – you’ll be glad you did!