Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a property. Here are three major reasons to purchase today.
1 . Affordability
Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However , affordability is determined by three components:
- Mortgage Interest
Prices are up, but so are wages – and interest rates have recently dropped dramatically ( see # 2 below ). As a result, the National Association of Realtors’ (NAR) latest opens in a new window Affordability Index report revealed that homes are MORE affordable throughout the country instantly than they were a year ago.
“All four regions saw an increase in affordability from a for everybody who is ago. The South had the actual largest gain in affordability of half a dozen. 9%, followed by the West which included a gain of 6. 0%. The most important Midwest had an increase of 1. 8%, followed by the Northeast over the smallest gain of 1. 8%. ”
2 . Mortgage Interest Rates
Mortgage rates have drop almost a full point after looking toward 5% last fall as well as , early winter. Currently, they are which follow 4%. In addition , Fannie Mae recently opens in a new window expected opens PDF file the average rate for finding a 30-year fixed mortgage will be 10. 7% in the second half of 2019. That compares to a 4. 4% average rate in the first accommodate and 4% in the second quarter.
With mortgage rates remaining all-around historic lows, Fannie Mae and opens in a new window others bring increased their forecasts for mortgage appreciation for the rest of the year. If lady price gains are about to re-accelerate, buying now rather than later forms financial sense.
3. Increase Family Wealth
Homeownership has always been recognized as a sensational way to build permanent family wealth. A opens in a new window new report by using ATTOM Data Offerings reveals:
“U. S. property owners who sold in the second quarter to 2019 realized an average home bargain gain since purchase of $67, 550, up from an average gain as to $57, 706 in Q1 2019 and up from an average gain because of $60, 100 in Q2 2018. The average home seller gain as to $67, 500 in Q2 2019 represented an average 33. 9 percent return as a percentage of and the purchase price. ”
The longer you hold-up purchasing a home, the longer that you just are waiting to put the power of home fairness to work for you.
While having affordability increasing, mortgage rates lowering, and home values about to re-accelerate, it may be time to make a move. Let’s gather to determine if buying now is wise for your family.
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Oliver and Devinee Overton-Morgan
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