If you are thinking about buying a home, now might be a good time to make a move. Home prices are expected to rise over the next year, so buying a home sooner than later might save money.
Home Prices Continue to Rise as Inventory Falls
For the seventh year in a row, home prices are expected to rise, though they may not grow as quickly as in previous years. Furthermore, there is expected to be a shortage of homes as supply diminishes. As the economy grows and the unemployment rate falls, home prices will continue to rise, and rents will continue to increase as vacancies remain low.
Still a Good Time to Buy a Home
According to a survey by Fannie Mae, people still believe it is a good time to sell their home, and many people feel better about their job.
This is a distinct change from December 2017, when rates dipped.
“HPSI rebounded from last month’s dip to a new survey high in January, in large part due to the spike in consumers’ net expectations that home prices will increase over the next year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae told Matthew Classick. “Results may continue to fluctuate over the coming months as consumers sort out the implications of the newly passed tax legislation on their household finances. Over the past year, continued home price growth has helped spur a sizable increase in the net share of consumers who say it’s a good time to sell a home but also a modest weakening in the net share who say it is a good time to buy. At the start of 2018, it is still too early to determine the overall effect of the new tax legislation on housing, and we will need to see whether positive impacts on both housing demand and supply materialize in the coming months.”
For more information about the survey results, with a complete breakdown, see Fannie Mae’s official report.
Prepare Now to Get a Mortgage
As the economy continues to improve, pushing home prices and interest rates up, increasing numbers of people will want to buy a home in the near term.
If you plan to purchase a home in the next few months, you should start working with a mortgage broker to be pre-approved for a mortgage.
Pre-approvals are important because:
- They demonstrate to Realtors and sellers that you are a serious buyer.
- They show you are financially qualified, and there is a high probability you are able to close on the home.
- They let you know how much you can afford to pay for a home.
- You are a more competitive buyer, because you can close more quickly compared to people who are not pre-approved.
Marimark Mortgage serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing, and help clients with HARP refinancing to lower their monthly mortgage payments.