There’s no debating it- the housing market is rebounding. We’re going to take a look at some of the effects of the recovering housing market and why now, not later, is a really great time to buy a home.
Home prices rose over 10% in the first few months of 2014. These numbers are in comparison to when the housing market were at or near their lowest, so this is expected to level off, but the fact remains that home prices in almost all markets are continuing to increase. Obviously, if you’re buying a house you’ll want to get as low a price as possible on it. Buying now instead of next year, or even next month, could get you a lot more house for your dollar.
Because of the rising home prices, many homeowners are just now starting to see equity in their homes, which will give many people who have been afraid of losing money on their homes the impetus to start selling and move themselves. Additional buyers will create more competition and help drive prices up as well.
Short Supply of Short Sales
With homeowners gaining equity in their homes, fewer and fewer short sales and foreclosures are on the market, which will help stabilize home prices. It will also reduce a homebuyer’s ability to find some truly great deals, once again netting less house for the money. If you’re thinking about finding a short sale or foreclosure, you’d better get moving while there are still plenty of them out there. Check out our page on short sales for more information.
This isn’t an effect of the rebounding housing market, but while we’re talking about reasons to buy a house now, it’s worth mentioning that mortgage rates remain extremely low. In fact, as of this writing, Freddie Mac reported that the average 30 year fixed rate loan has fallen for the fifth straight week and is down to 4.12%. As low as this is, it’s a percentage point higher than it was a year ago. Mortgage rates won’t stay this low forever, so once again, buying now while they are so low will save you a lot of money over the course of the loan.
As you can see, the improving housing market is affecting several factors that make buying a home now a really good idea if you’re planning on buying one anytime in the foreseeable future. If you’ve got any questions about buying a home in Wilmington, Leland or the surrounding areas of southeatern North Carolina, give Nilesh a call at 910-622-0319.