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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NAR is pleased to share the latest consumer guide about contract contingencies and clauses that buyers and sellers may encounter in a real estate transaction. The guide defines common contingencies and clauses and helps consumers understand what happens if the terms aren’t fulfilled. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Real Estate Contract Contingencies Understanding Condo Ownership How to Protect Against Real Estate Wire Fraud 5 Home Selling Tips for Privacy and Safety Do You Need Private Mortgage Insurance? What Is the VA Home Loan Guaranty? Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for the next consumer guide, which focuses on working with a remodeling contractor.
