Even though we are in a seller’s market, it’s a great time to buy. Here’s why.
If we’re in a seller’s market, why would you consider buying a home in 2017? Well, according to Forbes, home prices appreciated beyond expectations in 2016 and mortgage rates were flirting with record lows before inevitably passing 4% for the first time in two years.
Home prices rose in every month of 2016, with the largest increase being in the last half of the year. According to experts, prices will continue their climb in 2017, but at a lower rate. This means you can take advantage of the slowdown in appreciation right now.
Mortgage rates are going up, too. Economists predict that they will increase by at least 1% by the end of 2017. If you wait to buy a house, you might not be able to afford the same home you could now. Why would you wait to save up and have less buying power?
Economists predict interest rates will go up by 1% this year.
More and more millennials are transitioning from renting to buying, but the inventory of homes is limited and probably won’t grow significantly in the next few years.
Home builders aren’t building enough homes to make up for the shortage, either. With mortgage rates and home prices increasing, affordability will become a problem in the near future.
If you’re thinking of buying or selling a home, give me a call or send me an email. I look forward to hearing from you soon. Contact Us