The Naked Truth: 5 Real Reasons To Buy A Home In 2016
It’s a new year and you’ve decided that “this is the year” to turn a new leaf, be healthier, save more money or achieve a particular financial goal like buying a house. There are a multitude of reasons to buy a home: Pride of Home Ownership, Design Freedom, Tax Breaks, etc. etc. Friends and family will give you their opinion on why you should buy a home in 2016 from experience or sage advice from their real estate/mortgage friends.
But…that’s all subjective. How do you really know if 2016 is thee year to buy your dream home when you’ve been teetering on the fence about buying?
We’ll uncover the naked truth with the following 5 REAL reasons to buy a home in 2016:
5 Real Reasons To Buy A Home In 2016
- A Slow down in home prices
- More homes on the market
- Record low interest rates ending
- Rent prices continue to climb
- Doable low down payments
How do these 2016 factors make it advantageous for home buyers to act now? Here’s the rundown:
1. A Slow Down In Home Prices
Although real estate values have been on the rise, home prices are likely to slow down in 2016. According to Zillow Chief Economist, Svenja Gudell, Home prices are expected to increase 3.5%.
So purchase ready home buyers who’ve been eyeing the market will finally snag the opportunity to buy a home, which could create a stampede of buyers. Chief economist, Jonathan Smoke of Realtor.com said, “We have the potential for about six million home sales just through the months of April through September; that is basically impossible to do.”
So being ahead of the home buying wave is the smart, savvy and less stressed route.
2. More Homes On The Market
With the average yearly increase of home values slowing down, sellers will want to cash in on listing their homes. Now we’re hoping home buyers will be like kids in a candy shop with all of the available choices, but let’s see what happens.
Not only will sellers be more motivated to sell their homes, but builders are also focusing on starter and mid-range homes – boosting the housing market inventory. More home options will help lower buyers’ chances of getting into bidding wars, making it easier to buy a home.
3. Record Low Interest Rates Ending
On December 16th, the Federal Reserve increased interest rates, which are not good for buyers. It’s the first rate hike since 2006.
Higher rates will increase borrowers’ costs and their monthly mortgage payments.
Taking advantage of the record low mortgage rates now will save borrowers money for years to come.
4. Rent Prices Continue To Climb
According to Trulia’s Housing Economist, Ralph McLaughlin, the cost of buying a home would equal the nationwide cost of renting if interest rates rose to around 6.5%.
Buying a home vs. renting could still be a better deal even as mortgage rates gradually increase and rent prices continually rise.
5. Doable Low Down Payments
A lot of renters get discouraged from buying a home because of trying to get a 20% down payment together. But now there are several programs available that allow qualified borrowers to buy a home with as low as a 3% down payment. Read about all the different low down payment options to find out what could work for you.
Qualified Veterans also have 0% down payment options with No PMI when purchasing a home. Also, learn more about the benefits of No PMI.
And the 2016 home buying survey says…
Based on housing market economics, now is the time to buy a home!
If you’re still on the home buying fence, speak with a non-commissioned based Home Loan Expert to get answers to all your questions or start the process by calling 888-562-2611 to get a free rate quote today.
And if this is the first time you’re buying a home, check out our other post about HomePath Ready: A First Time Home Buyer Program.
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