Tomorrow is Cinco de Mayo, May 5th. Where has time gone?! Spring is in full force, the sun is shining, and the summer months are right around the corner. If you are debating moving up to your dream home, here are four great reasons to consider buying today instead of waiting.
1.) Buyer Demand is High & Inventory Is Low
Recent national numbers show buyer demand is at the highest peak experienced in years. Inventory for sale is at a 4.6 months’ supply, which is still markedly lower than the 6.0 months needed for a historically normal or balanced market. In specific parts of Kitsap County, inventory is even lower and cannot keep up with buyer demand.
The National Association of Realtors Chief Economist Lawrence Yun put it this way, "Demand in many markets is far exceeding supply, and properties in March sold at a faster rate than any month since last summer."
How might this impact you? If you are considering a move, listing your home today can greatly increase exposure to buyers who are out in force and ready to act. You may have exactly what they want!
2.) Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 11.7% (most pessimistic) and 27.5% (most optimistic).
According to the survey, the bottom in home prices has come and gone. Home values most likely will continue to appreciate for years to come. Waiting for your current home’s value to increase before selling could very well price you out of your new home if you aren’t careful.
3.) Mortgage Interest Rates Are Still Near Record Lows
As we reported earlier, interest rates have remained at or below 4% for some time now, and they are substantially lower than the rate previous generations paid when getting a mortgage. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison in projecting that rates will rise over the next 12 months.
Any increase in rates will impact YOUR monthly mortgage payment. Even an increase of half a percentage point can put a dent in your family’s net worth. Whether you are moving up or buying your first home, your housing expense will be more a year from now if a mortgage is necessary to purchase your home. Combine a rise in rates with a concurrent rise in the cost of purchasing a home, and your dream home may become out of reach.
4.) It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But what if they weren’t? Would you wait?
Look at the actual reason you are contemplating a move up and decide whether it is worth waiting. Have you always wanted to live in a certain neighborhood? Are there better job opportunities in a new location? Would your children flourish in a new school system? Would a climate change be just what the doctor ordered? Would you like to be closer to family? Is the impact on your life significant enough to make the benefits worth taking action now?
If the right thing for you and your family is to move up to your dream home this year, buying sooner rather than later could lead to substantial savings along with that improved lifestyle. As always, if you'd like to explore your options further, please don't hesitate to give me a call!