Why Now Is The Time To Buy

 

Have you been playing with the idea of buying a new home, but just haven’t been sure about pulling the trigger? It’s a big decision, no doubt. But there are a couple of  compelling reasons to buy now.

Rising Home Prices.  In the Charleston area, median home prices for the first 7 months of 2013 were 10% higher compared to the first 7 months of 2012. In addition, a recent report released by the Home Price Expectation Survey projects that over the next 5 years, home values will appreciate anywhere from 12% to 33%.  Prices aren’t going to go lower than they are right now. 

Mortgage Interest Rate Increases. After seeing historic lows in mortgage interest rates, The National Association of Realtors, the Mortgages Bankers Association, Fannie Mae and Freddie Mac are all forecasting that 30-year-fixed mortgage interest rates will be between 4.8% and 5.1% by this time next year.

Another concern with mortgage rates is the potential end of the Fannie Mae and Freddie Mac programs, which is being currently being considered by a group of senators. These government run agencies were involved in approximately 90% of new loan originations over the past several years. Should Fannie and Freddie cease to exist, experts expect rates could return to the 6 – 6.5% range.

There are lots of reasons you may want to think about buying a new home, but if cost is one of them you could save a lot of money by making the decision to buy now.

 

* Source: KCM Blog, Charleston Trident Association of Realtors


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