Why Buy Now??
Summer tends to be the busiest time of year for real estate! The kids are out of school and vacation time is ready to be used, making it the perfect time to move into your new home! Here's why I think 2015 is going to be even "hotter" than others for the real estate market!
1. Mortgages are getting easier to obtain.
From last year to now, a few changes have made it easier to qualify for a mortgage loan! With Fannie Mae and Freddie Mac outlining clearer guidelines, lenders have a better gauge as to what will qualify borrowers, which will result in them feeling more comfortable approving loans for questionable candidates.
They also have new first-time home buyers incentives allowing for purchase with only 3% down, or 5% if not a first-time buyer. This enables buyers to avoid FHA loans that tend to be higher-cost.
But, not to knock the FHA, they too have created a great buying incentive lowering their annual mortgage premiums (MIP) from 1.35% of loan amount to 0.85%. This decrease will greatly reduce monthly mortgage payments, making a summer move even more desirable!
2. The housing rates are not expected to be going down!
In fact analysts are agreeing that they expect the Federal Reserve to raise the rates by the end of 2015. The cost of borrowing money could have drastic increases by the next summer! People will no doubt be taking advantage of the opportunity to save this summer before they miss out!
3. Home prices are on the rise.
We're seeing a lower supply of available real estate for purchase, some data shows about 9% fewer homes listed than this time last year. This creates a seller's market! We also see that according to Realtor.com home prices have risen about 6% in most markets they track. The rise in prices will surely entice homeowners previously reluctant to sell, to now feel more confident listing their homes. We surely expect to see lot's more listings popping up this summer while the prices are hot, offering a greater selection for prospective buyers!