If you’ve been considering buying a home, 2016 might be the year you should go for it.
Since a while, mortgage rates have been vigorously low. Now obviously they are more than likely to bounce back up, but you haven’t missed your chance as yet.
Various factors are combining together, making 2016 a good time to buy a home:
1. Home prices are finally calming down
Real estate prices have been considerably lower than before but prices are expected to rise 3.5%, according to Zillow Chief Economist Svenja Gudell.
Buyers have been holding on to grab the opportunity to buy a home at a lower rate. However, this will result in a huge chain of buyers lined up to get homes.
As natural as it gets, not all will be in a condition to benefit from it.
The main concern is that home values will increase significantly higher than the wage growth which means it will be difficult to acquire a home especially for lower-income buyers.
2. More homes will flood the market
An impede growth in home prices will result in people to list their homes for sale enabling buyers to have more choices.
A new home market is also on its way where builders are focusing more on starter and middle-range homes, which will also amplify inventory and make it relatively easier for buyers.
This will eventually result in further homes.
3. Low-priced mortgages could fade
When interest rates go up, higher rates impel up borrowing costs and monthly mortgage payments.
4. Rents will still sting
Despite the home prices going down, rent prices will purse to increase yearly, which means in most cities, buying will be cheaper than renting.
Even though mortgages could get costlier, if you have the money, buying a house would still be a better option.