Thanks to the housing market crash during the Great Recession, you may be hesitant to purchase real estate out of fear prices have reached their highest points. You may believe buying today means your home value will decrease. However, this is not true. Here are five reasons to buy a home now.
1. The Market Has Not Reached Its Peak. Even though prices are rising, they are still 19 percent lower than they were before the market peaked. There is still over a year to go before the market will reach its top level.
2. The Market is Hot. Throughout the country, the real estate market is hopping. Home values are increasing, but since many individuals are entering the market, inventories are low.
3. Rates Will Rise Shortly. To help buyers, the Federal Reserve has kept rates low. However, this will change soon. It makes no sense to pay more for property at a later time. Also, January closings offer the best discounts as well.
4. Poor Time for Rentals. Since rental rates are very high, this market is not appealing. Affordability is not expected to get better, so it makes more sense to buy a house.
5. Mortgage Insurance is Affordable. One major roadblock for many potential home buyers is the normal 20 percent down payment. Without this money, individuals are forced to obtain mortgage insurance. This is extra protection for the lender that guards against default. On a positive note, today’s rates for mortgage insurance is quite affordable. Although it is an expense, it is less costly than it was in the past.