Making the decision to purchase a home is very personal. It is about where you are in life. Are you financially ready? Do you need more space because of a growing family? Are you looking for a yard for your dog to play in? The list goes on and on, and the reasons may vary from investment purposes to wanting a garage to park your car during the cold winter months.
If you have been on the fence here are some reasons to go ahead purchase before 2014.
- Rent is continuing to rise as there are fewer homes available to rent. This is especially true here in Colorado. After the “GREAT FLOOD of 2013” many of those who were displaced have already had a hard time finding temporary housing and rentals. When the supply decreases demand increases and the cost to rent rises.
- Mortgage rates are currently stable however they are expected to rise. The days of 3.5% rates have come and gone but the rates are still quite low (today’s rate is around 4.22%). As of right now, the housing sector is growing stronger and the inflation rates are low, thus promoting low mortgages. We can speculate on how long the low rates will stick around but it is the general belief that they will rise eventually, and they will have a significant impact on your purchasing power.
- Home prices are relatively stable. Although we saw a dramatic increase in Colorado at about 10% in home prices in August 2013 over August 2012. The actual price increase was only 0.5% over the previous month. This proves that our market here in Colorado is gradually increasing as it should (unlike the quick increase that occurred in the bubble market days). However, they are undeniably on the rise, so a home today that costs $400,000 will likely cost you $425,000 if you wait until spring 2014.
- It may be easier to find that perfect home. Throughout the early spring and summer, most buyers have been competing tooth and nail for nearly every home that would come on the market. With the competition slowing slightly, and the housing choices historically still going strong through October and November, it may be easier to find the home you want and get it under contract.
- Investing in your future is a great idea and purchasing a home is definitely cheaper than renting. When you purchase a home it gives you a chance to start building equity. Generally speaking instead of paying a monthly expense to borrow a place to live, you could purchase and invest in a home that has more personal and economic value. Consider the benefits of making this type of contribution to your future every month.
There are many reasons one should purchase a home, if the timing is right and if you are ready. These are just a few great reasons to stop wavering and purchase that home that is perfect for you before the end of the year....