Winter has come. If you’ve been thinking about making a move, it’s time to answer the question: Is this the right season to buy?
4 things every homebuyer needs to know about this winter’s housing market
Maybe you’re sick of worrying about how much your rent may increase. You also might want to start growing your family’s wealth by building your home equity. Or, you could be a homeowner ready to trade up to a larger place or a better location closer to work, school, or family.
Whatever your motivation might be for buying a house, winter’s a smart season to do it. Because:
1. Housing prices are expected to rise.
CoreLogic’s 2019 Home Price Insight report showed that housing prices appreciated by 3.5 percent within the past 12 months. The report also projects that prices will rise by roughly 5.6 percent through the upcoming year.
Compared to other seasons, housing prices are typically lower in the winter. But home prices are no longer bottoming out. For years to come, home values are expected to appreciate. There aren’t any benefits of waiting.
Winter’s for renters. Get prequalified in minutes and find out how much more you could save when you buy.
2. Mortgage rates are low for now.
The Primary Mortgage Market Survey from Freddie Mac indicates that 30-year fixed mortgage rates have been sitting well under 4 percent. Within the next 12 months, housing market experts predict these rates may hold steady or even decrease. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and NAR (the National Association of Realtors) all agree: Rates will be great in 2020.
Mortgage rates impact your monthly payment. Buying a home before the next rate increase could save you about $225 each month. Waiting a year to buy, on the other hand, means your monthly housing expense is likely to increase for a home of the same price.
3. No matter where you live, you’re paying a mortgage.
Some renters put off buying because they don’t know if they’re ready to take on the responsibility of a mortgage. But unless you happen to be living with friends or family rent-free, you’re already paying someone’s mortgage — your landlord’s or your own.
When you become a homeowner, your mortgage payment turns into your “forced savings” plan, allowing you to build home equity. As this equity grows, you can cash out on it later in life for unforeseen expenses, home upgrades, a small business, weddings, vacations, and more. Renting only continues to build your landlord’s equity and doesn’t help you use your monthly housing cost to your advantage.
4. Your next chapter awaits.
Two components go into the cost of owning a home: current mortgage rates and home prices. Right now, rates may stay stable as housing prices increase. If prices weren’t rising, would you still wait?
Your main motivator for buying a home can tell you when you should act. Wanting a safe place to grow your family, more control over renovations, and a bigger backyard for children and pets are all strong reasons to start hunting now instead of later. In this case, the money-saving benefits of buying sooner are the icing on the cake.
Get you home in 10?
Since winter’s technically “off-season,” you can count on your house-hunt and your mortgage moving fast. We already wow our borrowers with our super-speedy, in-house mortgage processing and on-time closings. Learn how winter buyers are using our exclusive 10-Day Close to save even more money in transition and cut down on time-waste.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources deemed reliable but not guaranteed.