Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a home. Here are three major reasons to buy today.
Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, affordability is determined by three components:
Mortgage Interest Rate
Prices are up, but so are wages - and interest rates have recently dropped dramatically (see #2 below). As a result, theNational Association of Realtors’(NAR) latestAffordability Indexreport revealed that homes are MORE affordable throughout the country today than they were a year ago.
“All four regions saw an increase in affordability from a year ago. The South had the biggest gain in affordability of 6.9%, followed by the West with a gain of 6.0%. The Midwest had an increase of 5.8%, followed by the Northeast with the smallest gain of 1.8%.”
2. Mortgage Interest Rates
Mortgage rates have dropped almost a full point after heading toward 5% last fall and early winter. Currently, they are below 4%. Additionally,Fannie Maerecentlypredictedthe average rate for a 30-year fixed mortgage will be 3.7% in the second half of 2019. That compares to a 4.4% average rate in the first quarter and 4% in the second quarter.
With mortgage rates remaining near historic lows,Fannie Maeandothershave increased their forecasts for housing appreciation for the rest of the year. If home price gains are about to re-accelerate, buying now rather than later makes financial sense.
3. Increase Family Wealth
Homeownership has always been recognized as a sensational way to build long-term family wealth. Anew reportbyATTOM Data Solutionsreveals:
“U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018. The average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of original purchase price.”
The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.
With affordability increasing, mortgage rates decreasing, and home values about to re-accelerate, it may be time to make a move. Let’s get together to determine if buying now makes sense for your family.
Author:Lance Whipple PA Phone: 407-494-6030 Dated: July 25th 2019 Views: 87 About Lance: My name is Lance Whipple and I help first-time homebuyers, international investors, “active adults...
EXIT Realty Champions', Champions Gate Real Estate Office, by Reunion Resort Orlando, is a full service Real Estate Brokerage Office in Champions Gate, Davenport 33896, next to Reunion Resort in 34747. Search for homes for sale with our Realtors, local experts in Champions Gate, Reunion Resort, Kissimmee and Davenport FL. This being the main area for resort vacation homes that can be rented out to meet the Disney World Orlando>, Universal Studios and other theme park market.
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In a normal housing market, whether you’re buying or selling a home,
"Lance helped us close on a home in 21 days. As a retired military officer I had high expectations for the home buying process in central Florida. Lance helped us locate financing, select a title company, get through the inspection process and utilizing a VA loan meeting our tight deadlines. Lance is bilingual and speaks Spanish fluently which helped us greatly as my wife's first language is Spanish. His local knowledge ensured that we were well informed throughout the purchase process. His extensive understanding of FRPTA provided me the confidence to purchase my home from a foreign investor. He also helped with permit concerns which guaranteed we would have no surprises down the road with our purchase. Lance conducted a market analysis that was a spot on to the value of the home and the appraisal actually was higher than his estimate. If you are moving to central Florida this realtor is the best in the business and if you are a veteran you would be in safe hands working with Lance, who is a retired Air Force Officer, who will look out for your best interest and help you find the home you are looking for. Thank you Lance Whipple for helping us purchase our new home."