Considerations When Buying a New Home
A Guide to Deciding When it is the Best Time to Buy
It is a question that stumps even the brightest economist and we do not claim to have a crystal ball, but we have gathered our thoughts on why now is a great time to buy.
Rates are still at historically low levels with many financing programs available to choose from. In fact, down payment requirements were just recently lowered by the FHA in 2015. The fed has begun its path to increase interest rates and has plans to do so further as the economy continues to perform.
For many, home ownership has created significant wealth. As a homeowner you are able to take advantage of generous tax deductions and benefit from the equity you create as your home appreciates in value and as you pay down your mortgage. Studies have shown that owning a home is the best way to build long-term wealth as opposed to renting. When you buy a home, you are purchasing “cost of living” stability. You know you will pay the same monthly payment for the life of your thirty year fixed mortgage, while rents will continue to rise.
There are still many great properties available at reasonable prices. As housing demand continues to heat up and new properties are developed, close in locations become more limited and more expensive.
It is important to remember that your home is where you live and occupy your time. It defines your lifestyle and comfort. The market will always fluctuate, which means it could go up or down. If you waited for when you think you may be able to get the absolute best deal you could end up waiting for years Long term historical home prices have continued to appreciate despite short term disruptions. See S&P/Case-Shiller U.S. National Home Price Index. The fundamentals today tell us that prices are still down, interest rates are low and there are plenty of great home sites available.