There are several reasons why now is the perfect time to start saving for a new home. If you are still on the fence, consider the following:
Real Estate Prices are Low
As expensive as houses may seem to be, the fact is that they are being listed relatively inexpensively in several markets. Despite reports that home prices are rising, there are still many deals to be found, particularly when looking at foreclosed properties or distressed homes. This, perhaps, is even more precedent to buy now because when home prices do rise, your investment will come back rather quickly.
Mortgage Rates Have Fallen
Not many people can purchase a home outright, but mortgage rates are low right now, a big plus for most prospective homebuyers. Just be careful not to repeat the mistakes of buyers who contributed to the collapse of the real estate market. The road to home ownership is filled with obstacles along the way, so make sure you do plenty of research beforehand to avoid and learn from the mistakes of past homeowners.
Take Advantage of Short Sale Market & Foreclosures
As previously mentioned, there are many foreclosed properties available on the market. In fact, foreclosed purchases made up 21 percent of all residential house sales in 2012. There is also a short sale market in many areas, and people can grab great prices on a home before the property is foreclosed on.
Rental Prices are on the Rise
If it seems like rental prices are skyrocketing, it’s because many of them are. Rental affordability across the country has been steadily rising since the early 2000s, and shows no sign of slowing down anytime soon. Rent increases are rapidly outpacing the increases on purchases in large part thanks to demand and stricter restrictions on loan applications. You may find yourself saving money by purchasing a home, with a monthly mortgage rate that’s lower than rent prices in your area .
A Long-Term Investment Opportunity
Renting is essentially throwing money away every month, but purchasing a new home is making an investment that can strengthen your financial portfolio. All the money you put into your home has the potential to add value to already rising housing rates. Real estate is one of the few investments that tend to retain value, making it a smart investment opportunity for those willing to take the leap.