As parts of the country see their first big freeze, you might think that the housing market will do the same. This couldn’t be further from the truth!
While it’s true that fewer homes are listed over the holidays, the homes already on the market are maintaining their momentum. There are a lot of great reasons for sellers to stay optimistic through the winter, and the market for home buyers is just as strong.
Here are four reasons you should consider buying your dream home this winter instead of waiting for spring.
1. Prices will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year. According to the Beverly-Hanks Q3 2016 Market Report, Asheville MSA’s home prices appreciated 5.89% over the last 12 months. With increases of 2.24% in the past 90 days alone, this could lead to an additional appreciation rate of over 8% in 2017.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. There’s no reason in waiting for a turn in the trends. If you’re looking for an affordable investment, the time to invest is now.
2. Mortgage Interest Rates are Projected to Increase
Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure.
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently at 4.08%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of REALTORSⓇ are in unison, projecting that rates will increase by this time next year.
An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way You’re Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage—either yours or your landlord’s.
As a homeowner, your mortgage payment is a form of “forced savings” that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Think about your expenses in the long term. Are you ready to put your housing cost to work for you?
4. New Year, New You
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?
Maybe you want to have a great place for your children to grow up. Or you want your family to be safer. Or you just want to have control over renovations and your long-term monthly expenses. Regardless of the reason, make 2017 the year you Live the Life You Choose. Start the homebuying process now and start the year in a new home.
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.
All real estate is local. In order to make confident real estate decisions, we believe it is important for you to have timely and neighborhood-specific information. If you would like more information about buying a home, our experts at Beverly-Hanks are here to help. Contact us today to speak with a Beverly-Hanks real estate agent about buying homes and land in Western North Carolina.
This post is adapted from “4 Reasons to Buy Your Dream Home This Winter” by Keeping Current Matters.
— Beverly-Hanks WNC (@beverlyhanks) December 13, 2016