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Buying a House? 4 Reasons to DO IT NOW


Buying a House? 4 Reasons to DO IT NOW | Keeping Current Matters

Here are four great reasons to consider buying a home today, instead of waiting.

1. 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 30.8% (most optimistic) and 9.4% (most pessimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although the Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently around 4.2%, Freddie Mac is projecting that rates will increase to 5.2% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way, You are Paying a Mortgage

As a research paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

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 buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

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Summer 2014 | Things to Consider When Buying a Home | Keeping Current MattersATTENTION: If you are a real estate agent looking for more information to simply and effectively explain to your buyers why now is a great time to purchase, sign up for a Free 14 Day Trial of KCM and download the Summer Edition of our 11-page eGuideThings to Consider When Buying A Home.  

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One Response to “Buying a House? 4 Reasons to DO IT NOW”

  1. Tina Gleisner August 5, 2014 at 1:45 pm # Reply

    Well I’ve got 3 of your 4 points covered. We had begun to explore where we wanted to move for retirement. When we discovered the perfect astronomy town (no street lights) outside Phoenix, we thought about buying now & renting until we were ready to move. Why? … because it’s a buyer’s market until end of the year, and low interest rates. We completed contract negotiations Sunday night.

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