Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a home. Here are three major reasons to buy today.
Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, affordability is determined by three components:
Mortgage Interest Rate
Prices are up, but so are wages – and interest rates have recently dropped dramatically (see #2 below). As a result, theNational Association of Realtors’(NAR) latestAffordability Indexreport revealed that homes are MORE affordable throughout the country today than they were a year ago.
“All four regions saw an increase in affordability from a year ago. The South had the biggest gain in affordability of 6.9%, followed by the West with a gain of 6.0%. The Midwest had an increase of 5.8%, followed by the Northeast with the smallest gain of 1.8%.”
2. Mortgage Interest Rates
Mortgage rates have dropped almost a full point after heading toward 5% last fall and early winter. Currently, they are below 4%.Additionally,Fannie Maerecentlypredictedthe average rate for a 30-year fixed mortgage will be 3.7% in the second half of 2019. That compares to a 4.4% average rate in the first quarter and 4% in the second quarter.
With mortgage rates remaining near historic lows,Fannie Maeandothershave increased their forecasts for housing appreciation for the rest of the year. If home price gains are about to re-accelerate, buying now rather than later makes financial sense.
3. Increase Family Wealth
Homeownership has always been recognized as a sensational way to build long-term family wealth. Anew reportbyATTOM Data Solutionsreveals:
“U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018. The average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of original purchase price.”
The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.
With affordability increasing, mortgage rates decreasing, and home values about to re-accelerate, it may be time to talk with a local real estate professional to determine if buying now makes sense for your family.
The Turn Key Group is an assertive group of Realtors in Grand Junction Colorado. We utilize cutting edge tools and home selling techniques that make us stand out from the rest. We are Real Estate experts and we are ready to guide you through the home buying process. We are committed to fast, professional and courteous service that will help you understand and feel at ease throughout the home buying process. If you are looking for that dream home, you can count on us to help you find it and negotiate an excellent price for you.Tell us what you are looking for and we will search high and low to make your dream a reality! We will work relentlessly for you while keeping honesty and integrity at the forefront. Our trained and certified loan originators specialize in financing homes in the Western Colorado real estate market. We are prepared to find the right loan program with competitive rat es and low down payments for you.
If you currently own property and are thinking of placing it on the market, let us do the work for you! We can provide you with information about preparing your home for sale so you'll get the most money in your pocket. We have tools in place that will make your property stand out and we will price your property right in order to get it sold FAST!
Our dedication and professional service are unparalleled. In today's market, you need a quality professional working for you. We focus on your time and your investment. Contact us now. 970-244-9217
Some Highlights: Buyers are active in the market and often competing
"My husband and I were Cindy's first clients! I was so impressed with how well she did her job. Cindy is very professional, friendly and quick to respond to any questions. I also appreciated that she let us know what was going on every day with our home purchase. We recommend Cindy any day of the week!"