February 22, 2019
4 Arguments for Buying a Home This Year
Did “buying a home” make your New Year’s resolution list this year? If so, then you may be in luck, because the real estate market is looking much better for home buyers this year. Bear in mind that while the market is less competitive and expensive than the year prior, it is not free of its challenges. Nevertheless, it presents a good opportunity for home buyers who have been holding off on getting their dream home. Here are 4 arguments for buying a home this year:
Buying a home has probably been a struggle thus far. After all, the real estate market has been extremely competitive due to a reduced number of homes available. Just last winter, the national home inventory hit a record low. Often times, when you could actually afford a home, it was already sold by the time you expressed interest. This has turned away many buyers, who are choosing to delay their house hunt until after the market vastly improves.
Fortunately, things are starting to look up this year, as experts are predicting an increase in home availability this year. While this means that there will be less competition, it also means that prices will be steep. So, if you wish to take advantage of these new opportunities, you better have a lot of money saved up.
Prices Are Rising at a Slower Rate
As you know, the prices on homes continue to rise year after year, making affordability a huge reason why people have avoided getting a home. 2019 looks to be no different; home prices will still continue to go up. However, they are expected to rise at a much slower pace – at a little over half the rate they did last year. To put this into perspective, prices rose roughly 5% last year and are expected to only rise 2.2% this year. Even though this isn’t something that will make people sprint out to buy a home, it is a step in the right direction.
Mortgage Rates Are Falling
Remember all the warnings people were giving about the rise in mortgage rates in 2019? Well, that has happened – so far. In fact, mortgage rates have been going down. This is leaving experts dumbfounded, as we ended 2018 with average rates on a 30-year fixed-rate mortgage hitting close to 5%. Yet, rates continue to fall this year, which means it is a prime opportunity to take advantage of better rates.
Renting Isn’t Getting Any More Affordable
As a final push to make a home purchase this year, consider this: rent prices are on the rise and do not show any signs of slowing down. While renting an apartment is certainly less costly than purchasing a home, at least you will be building equity with a home purchase. Rather than stay put and pay a higher rent, why not try to take advantage of a real estate market that is looking promising this year?
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