We are looking to finish the first quarter of 2015 already. How time flies! The first two months of this year have been extremely robust in real estate. With increasing confidence in the economy, loosening of lending criteria, decrease in down payment requirement and loan costs, and still remarkably low interest rates, many people are looking to buy a home this year. We are working with many clients who are upsizing and downsizing. This may turn out to be a year of lateral-movers.
Alysa will share below why it’s a good time to buy a home right now.
IS NOW A GOOD TIME TO BUY?
We are frequently asked “Is this a good time to buy a home?”
And, our answer is an emphatic “Yes, this is a GREAT time to buy a home!”
This is what we are seeing:
- With a balanced market, buyers have more options and leverage than in the past 3-4 years.
- The Millennials (18-34 year olds) are the largest group of home buyers since the Baby Boomer generation. They are entering the home buying market after cautiously sitting on the sidelines for the past seven years.
- Lenders are predicting we should see increased mortgage interest rates later in 2015. When rates begin to rise, those buyers which were sitting on the fence will want to purchase
- Rental rates are continuing to rise. More renters are reconsidering purchasing homes versus continuing to rent.
- It’s easier to buy now. After years of very rigid lending requirements, the mortgage industry is finally beginning to relax.
- FHA loans have reduced upfront mortgage insurance premiums last month. Also, some lenders have expanded the types of mortgages they offer. In addition, Fannie Mae is now allowing purchases of conventional mortgages that have down payments as low as 3 percent and Freddie Mac is planning to do the same for mortgages closed on or after March 23.
Overall, this is a great time to buy a home! Do you know anyone thinking of purchasing? Let us know, we would love to help them!