Setting down some roots in a home and a neighborhood that is right for you can be one of the most important decisions you ever make. If you are wondering when a good time to buy is, it may be now. With the sun shining, it is the perfect time to pack up those boxes and start your future.
But before you load up that moving truck, you have to find the right home. Here are four reasons why now could be the time to buy.
In the first quarter of 2016, home prices rose 87 percent, according to the National Association of Realtors. It is expected that this trend will only continue as inventory remains low (we will get to that shortly) so now may be the best time to jump into the market and secure a price that works for you. In the western U.S., the median home prices have increased 40 percent over the last three years, according to Money Magazine. Waiting may result in prices going up even further and some buyers may risk being priced out of the market.
Oil prices and nervousness over the global economy has pushed mortgage rates to a three-year low, according to The Washington Post. The Washington Post states that the 30-year fixed-rate average rate is now at 3.58 percent – the lowest since May 2013. So even though prices are climbing, lower interest rates are helping to make purchasing enticing for first-time home buyers. The recent “Brexit” vote may have also opened the door to favorable interest rates.
As mentioned previously, inventory is low, which is pushing up prices. As of February, the inventory across the country was at its lowest since 2005, according to CNBC. Money Magazine states that as of March, there were 1.98 million homes available, which comes out to a 4.5- month supply – a 6-month supply is the gold standard. A low inventory just means the competition will be high. First-time home buyers may need to be more persistent and make sure they stand out in the market. Getting pre-approved for a mortgage so that you can submit a pre-approval letter with your offer can help put you ahead of the competition.
Despite prices going up and low inventory, home sales are still on the rise. According to the National Association of Realtors, pending home sales in March reached highs that hadn’t been seen in 10 months. This can be partly explained by lower interest rates.
The numbers add up to now could being a good time to buy. Buying your first home should be an exciting experience. APM can help it from becoming an overwhelming one. When you are ready to become a first-time home buyer, APM will help provide you with clear instructions and easy steps to follow. We want to educate you about the mortgage process, and guide you through to a quick, hassle-free close.