02 Aug Now or Never? Why Now is the Best Time to Buy
Real estate, mortgages, buying, selling, housing market; it’s easy to get lost behind all the jargon that makes up the world of real estate. Mortgage rates are constantly stumbling or climbing, inventory can be high one day and scarce the next—it’s an unpredictable beast. So how do you know when’s a good time to buy or when you should take a step back? As confusing as it can sometimes be, the real estate market offers a lot of clues to make your decision to buy (or not buy) an educated one.
June 23, 2016 was a bold day for England. Their surprising vote to leave the European Union sent shockwaves across the world, creating ripple effects in the United States. What has caused significant problems just over the pond has actually had the reverse effect in the U.S. Mortgage rates have been tumbling for a few months now, but, thanks to Brexit, rates have fallen even more. Who benefits? Homebuyers and those wishing to refinance.
Brexit brought record lows with the 30-year fixed mortgage rate averaging 3.48%. This is the lowest Americans have seen since early 2013. Lower interest rates make it easy for homebuyers, especially first-time homebuyers, to afford a home. There’s a chance that rates will continue to fall, but it’s more likely rates will go up, which is why now is the time to buy. Should rates fall further, refinancing is a smart option.
Home Prices Reaching a Plateau
Home prices are still on the rise, but they are climbing at a much slower rate. SmartAsset.com suggests that while, yes, prices are still going up, buying now could be cheaper than waiting a few months. Even with slowing progress, pricing is still going up and saving even a few thousand dollars is more money saved; use it for home repairs or any other use you want.
Just because you live in a high-rise doesn’t mean your rent should be sky-high. Unfortunately, just because it shouldn’t be pricey isn’t enough to make it so. Rents have been climbing, reaching a high this year in cities like D.C., NYC and San Francisco. According to SmartAsset.com, rents are expected to increase 8% this year.
In a majority of U.S. cities, it’s cheaper to buy than to rent. You pair this with the tax breaks available for homeowners and it’s a no brainer. Tax laws seem to encourage home ownership in a number of ways. Homeowners can deduct their monthly interest come tax time in addition to some home improvement expenses. You can also deduct from property taxes. So while buying a home can seem like a big financial commitment, tax breaks help homeowners out. They do nothing for renters. Yet another reason to buy.
Think You’re Ready to Buy?
Are you looking for a home that you can afford? If you are indeed ready to buy your dream home and reap those tax benefits, contact us to learn more about our beautiful homes. We’d love to help find your dream home!