After purchasing a first home, the next big big decision is when to sell and move up to the house that more closely matches your dream. If you have visions of a larger yard, more bedrooms, a different neighborhood, or an all together different location, here a some reasons to consider buying today instead of waiting.
The two major components that determine the cost of a home – the current market price and the current mortgage rate – are both on the rise.
Buyer Demand is High & Inventory Is Low
Recent numbers show that buyer demand is at the highest peak experienced in years. Listing your current home now can increase exposure to potential buyers who are actively looking and seeking to buy now while interest rates are still low.
“Demand in many markets is far exceeding supply, and properties in March sold at a faster rate than any month since last summer,” said The National Association of Realtors, Chief Economist, Lawrence Yun.
Prices Will Continue to Rise
The most recent Home Price Expectation Survey projects appreciation in home values over the next five years to be up to 27.5%.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting for your current home’s value to increase before selling could price you out of your new home if you aren’t careful.
Mortgage Interest Rates Remain at Near Record Lows
Current interest rates remain at or below 4%, a near-historic low, making this an ideal time to buy before the inevitable increase.
As discussed last week, even a moderate an increase of half a percentage point will impact your monthly mortgage payment. Whether you are moving up or buying your first home, your housing expense will be more a year from now if a mortgage is necessary to purchase your home.
If you have determined that moving up to your dream home (or closer to that ideal) is right for you and your family, buying sooner rather than later could lead to substantial savings and a sound investment.
If you have experience with or questions about buying your next home, feel free to comment below or contact me directly.