If you’ve been looking at buying a new home for a while, it’s not too late to take advantage of the lower mortgage rates still available in 2016. We’ve all seen how the mortgage rates have been at amazing lows, trickling down and tempting many to make a new home purchase. This January, there’s still time to act! CNN Money, among other sources, are indicating that there are many factors involved in making this year ideal for buying or building that new dream home you’ve always wanted.
Real estate values have risen but are expected to slow their pace in 2016. If you are a potential buyer and have hesitated because of increased prices, it’s a great time to jump in again and buy. In a thriving community like Edwardsville, (currently voted one of the top 11 St. Louis/Metro East suburbs) for example, there are many subdivisions and properties to choose from that offer price point options depending upon your budget. Whether you want a home with acreage or prefer all the benefits a neighborhood has to offer, as real estate prices begin to flat-line, the New Year can be an exciting time to get the home of your dreams!
Another benefit associated with this real estate trend is that homeowners often decide it’s time to put their homes on the market, offering buyers more choices. Keep in mind: these home owners have seen their existing homes appreciate in value, making it a prime time to sell and reap the reward for their investment. In the Edwardsville/Glen Carbon residential area and beyond, we’ve also seen the new home market grow with a focus on starter and middle-range homes. This can encourage a more diverse group of people to buy, boosting inventory and offering more options for buyers. More homes available in the market place means finding a home that suits your needs hasn’t been this easy in quite some time.
Other things to consider, the Federal Reserve is expected to begin increasing interest rates, so it’s better to act now in your house hunt before the low rates start to diminish. Even if it’s a gradual increase, the domino effect of higher rates will increase borrowing costs and mortgage payments. Experts believe the earlier you buy in 2016, the better. So, while other families are taking down their holiday lights and décor, maybe it’s time to take a drive with your family around the different neighborhoods, looking for that perfect house to finally call “home”.
One final reason buying now makes good, financial sense. Rental prices are anticipated to be on the steady climb in 2016. In most cities and towns, buying a new home is going to cost you less than renting. Even with increased mortgage costs on the horizon, buying is still the best financial decision one can make. For example, interest rates would need to increase to around 6.5% for the cost of buying a home to equal the cost of renting one. Why spend your money on renting a home that you will never own?
As a licensed Realtor, I know the local market and have first hand experience in what potential buyers look for in our area. If you are planning on buying a new home, or selling your existing home, or even are in need of expanding or building, I have the experience and knowledge you want. Contact me for your real estate needs while the mortgage rates are low. 2016 can be the best year yet for finding you and your family an ideal home for making new memories. Happy New Year!