4 Reasons Not to Wait to Become a Homeowner

Becoming a homeowner tops many bucket lists. Whether you're looking for the home of your dreams or simply to become a homeowner for the first time, 2015 is already in prime market conditions for buyers.

With spring rapidly approaching in mere days, make your move in the winter market before things heat up. Here are 4 top reasons now is the best time to buy, as recently outlined in the KCM blog.

1. Prices Are Expected to Rise

According to the most recent Home Price Expectation Survey, which polls a prestigious panel of over 100 economists, investment strategists, and housing market analysts, home value appreciation over the next 5 years is expected to be between 11.7% (most pessimistic) and 27.5% (most optimistic).

Low home prices are already on the climb, and are expected to continue to do so. Waiting for home prices to drop is a mythical expectation, and no longer makes any sense.

2. Mortgage Rates Are Expected to Increase

Alongside growing home prices, mortgage rates are also projected to increase. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are all in agreement that rates will be up almost a full percentage point by the end of 2015.

These rates will dramatically affect your month to month payments, and could easily make the difference between being able to afford your mortgage payments or not.

3. You'll Be Paying A Mortgage Now, and Then

Remember, whether or not you're spending money towards an actual mortgage, you will be paying monthly housing expenses regardless. Here is what the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It's Time to Move On

While the cost of a home is determined by two major components - the price of the home and the current mortgage rate - take these out of the picture for now. If these two factors were not in place, would you still wait?

In other words, examine the real root of why it is you want to move to determine if it is worth putting on hold. Maybe you are looking grow a family, or are seeking to have control over renovations.

Take this reason into account and know that the financial parameters are all in place in the current market for your home ownership exploration to be a good investment. Waiting will make this aspect more difficult.

Is it time for you to achieve your dream?

Don't hesitate to send us an email or give us a call with your questions! We'd be happy to help.

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