Buying a House? 3 Reasons to Do it Now!

by The KCM Crew on June 24, 2013

in For Buyers

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

1.) Prices Will Continue to Rise

Standard & Poors recently upgraded their 2013 forecast for the S&P/Case-Shiller Home Price Index to an 11% year-over-year increase from their original 8% projection.
 

The Home Price Expectation Survey, which polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts, projects a 22.3% appreciation in home values over the next five years. The bottom in home prices has passed. Waiting no longer makes sense.

2.) Mortgage Interest Rates Are Increasing

As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about 1/2 percentage point over the past several weeks.

The National Association of Realtors, the Mortgage Bankers Association and Fannie Mae are calling for interest rates to rise by approximately an additional ½ percentage point by this time next year. Some are trying to minimize the impact of higher rates. For example, Freddie Mac in their June U.S. Economic and Housing Market Outlook stated:

“At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”

However, an increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3.) 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.

In short, if you are playing with the thought of buying a home, NOW is the time. Give me a call and let's get moving and finding you that new home before the end of summer and lock you on the still good interest rates and housing prices.

Noemi Cardoso
William Raveis Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
Noemi@DistinctiveHomes-NE.com
 

Housing market starts 2013 on a tear.

A "sold" sign replaces the "for sale" sign at a home in Seattle.(Photo: Elaine Thompson, AP)

Story Highlights

• Only Delaware and Illinois left out of year-over-year gains
• Home prices start year on a tear after rising 6.8% in 2012
• Western states are biggest gainers,

 

Home prices jumped 9.7% in January from a year before and are on track for similar increases for February, market watcher CoreLogic says.

The gain marks the biggest year-over-year increase in almost seven years and the 11th consecutive monthly increase.

MORE: 7 cities with the fastest-rising price gains

The increases, led by Western states, were broad. Only Delaware and Illinois experienced year-over-year price declines, down 0.1% and 0.4%, respectively, CoreLogic says.

Prices showed "strong growth during the typically slow winter season," says Mark Fleming, Corelogic economist. "With these gains, the housing market is poised to enter the spring selling season on sound footing."

The states with the fastest home price appreciation are largely those where the housing downturn hit the worst.

They are also markets where the supply of homes for sale has tightened rapidly in the past year given increased demand and fewer foreclosures.

In January, Arizona prices were up 20% year-over-year. Nevada posted a 17.4% gain. Idaho jumped almost 15% and California, 14.1%, CoreLogic says.

Overall, 22 states saw January prices up 6% or more from the year before.

They included the Western leaders but also states such as Michigan, West Virginia, Vermont, Virginia and South Carolina.

CoreLogic says prices will rise 9.7% on a year-over-year basis in February, too. They'll fall 0.3% in February from January reflecting a seasonal winter downturn, it says.

Numerous home price surveys are showing strong price gains. The Standard & Poor's Case-Shiller index showed prices up 7.3% last year, S&P said last week.

Given the increases of last year, 14 states and Washington D.C. are now within 10% of their previous peaks before the housing downturn, CoreLogic says.

South Dakota and Washington D.C. are basically on par with previous peaks, CoreLogic's data shows.

North Dakota, Nebraska, Oklahoma, Iowa, Arkansas and Alaska are within 4% of their previous peaks.

Kentucky, Kansas, New York, Vermont, Texas, Colorado and Louisiana are within 10% of their peaks.

In many of those states, home prices didn't fall as far during the downturn, or they have stronger economies -- many with big energy or agricultural sectors -- that have helped home prices.

Even with their leading price gains of late, Arizona prices are still 39% off their previous peaks, CoreLogic says. Nevada prices are down 52%. Florida prices are 43% off their peak but were up almost 10% in January year-over-year.

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com