Why 2018 is a Great Time to Buy a Home
Jared Broussard • January 15, 2018
There are some common new year’s resolutions that tend to garner our attention this time of the year. Save money, get in shape, etc. This year there may be a new one to add to your list; buy a home. While this is an important goal to have no matter the time of the year, there are some other factors in 2018
that can make this an ideal time to seriously considering purchasing a new home. Here are a few reasons why this year should be your year.
Home Prices are Rising
Of course, the golden rule of the stock market is to buy low and sell high. As a homeowner and home seller, ideally, your house will also be worth more in the future. As a homebuyer, this means that a new home will cost more. 2017 finished with home prices growing at a rate of 5.5% year-over-year. Forecasts call for a more moderate 3.2% increase in 2018. So while prices are increasing, they are doing so at a slower rate. It also means that the sooner you purchase, the sooner you can partake in this equity growth.
Interest Rates are Going Up
It’s bound to happen eventually and the recovering economy, as well as other factors, mean that it will occur sooner than later. As interest rates begin to rise it will be more expensive to finance your new home. However, beginning from record low-interest rates means that the expected increases will still be very affordable. Last year a 30-year fixed rate mortgage
crept above 4% and is expected to hit 5% in 2018. So by shopping now and securing your rate, you can save thousands over the life of your loan.
Increased Competition
Of course, both of the aforementioned items are driven by the market. Simple supply and demand. Today more people are in a position to buy a home, meaning that there is a higher level of competition which will drive up prices. By beginning now you can have a leg up on this competition, saving you time and money down the road.
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From the Louisiana Department of Insurance: Insurance Commissioner Tim Temple announced today that the Louisiana Department of Insurance (LDI) continues its work to develop a regulation creating benchmark discounts for Fortified roofs in Louisiana. The LDI is working with the National Association of Insurance Commissioners (NAIC) to develop the benchmark discounts using Louisiana-specific data, hurricane modeling and actuarial considerations. “With over 11,000 Fortified roofs in Louisiana and two years-worth of insurer experience with rating for those roofs in our state, now is an appropriate time for the LDI to establish benchmark discounts for homeowners insurance companies operating in our market,” said Commissioner Temple. “These benchmarks are being thoughtfully developed to help consumers receive the discounts they deserve for fortifying their homes while making sure insurers know the benchmarks reflect how much Fortified roofs actually mitigate their exposure to risk across Louisiana.” Like in Alabama’s Fortified benchmark discount structure, the LDI regulation would require Louisiana insurance companies to either meet the minimum benchmark discount established by the LDI or provide actuarial justification for why the company’s discount does not meet the benchmark. Louisiana is the fastest growing state for Fortified roofs in America. To date, over 11,000 Fortified roofs have been installed in Louisiana, including over 4,100 through the Louisiana Fortify Homes Program.
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