September 5, 2015
Why Is Now the Time to Buy a Home?
For the first time in well over a decade, many factors in the current real estate market are trending toward buyers, rather than sellers. Let’s look at some of the reasons why now is a great time to invest in your own home. Interest Rates Are Still Low While rates have been lower at some points in the past few years, overall, the numbers are still very attractive. National averages mark the interest rates for 30 year mortgages at a touch over 4% in many locations right now, but predictions lean toward a slow rise for next year. Experts expect a national average of around 5% in 2016. If your interest rate is higher, so is your monthly mortgage payment. Rents Are High – And Rising If you’re currently in a rental property, you know that you’re paying top dollar – and your rent is probably rising every year. On average, the number of available rental properties is dropping, and the number of renters looking for them is rising. This makes it easier for landlords to charge premium rates for sub-premium properties. You can definitely get more home for your dollar if you shift to home ownership – and your monthly payment will be locked in for years to come. No ugly surprises there! Employment Numbers Are on the Rise One of the most important factors lenders consider when they’re assessing potential homebuyers is their employment history. Employment rates are now at their highest point in the last ten years. This means you’re more likely to have a job, and have had it for some time. This makes you a better credit risk to a lender. You’re more likely to get a loan, and get one large enough to find a great home. Home Prices Are Also Rising With the economy now in full recovery mode, home prices are beginning to go up. A house selling for $180,000 this year can be $195,000 next year, and $205,000 the year after that. When we have a strong economy, people tend to make more. When people make more, it’s assumed they can afford to pay more. You’ll most likely pay less for the same home if you make your move now. Save on Your Energy Bills When you own your own home, you can install energy-saving appliances, windows and other improvements that will save you money in the long run. When you rent, you’re stuck with what you’re given, and often pay more to utility companies than you would like. You’re Establishing Equity Yes, it’s an “old school” reason to buy a house. Your grandparents were told to buy, as were your parents, and now you. But it’s true…when you buy rather than rent, you have something to show for your money every month. Your home becomes an asset you can sell if necessary. And regular mortgage payments strengthen your credit rating. It’s a win-win situation. Did you know… While there is a large inventory of previously-owned properties on the market in most cities, the supply of new construction properties nationwide can barely keep up with the demand! There are several reasons for this, ranging from better technology and building techniques to advanced materials to highly competitive pricing. In the greater Savannah, GA area, we’re very fortunate to have some excellent options for homebuyers interested in new construction. At Ernest Signature Custom Homes, we keep the needs and wants of our customers in our sights at all times. We’re building the ideal homes for local families, using local materials and local labor. The homes we design are perfect for our climate, for our landscape and for our customers. For more information on our exceptional communities and exciting floor plans, contact our Sales Team at (912) 756-4135 or drop us an email today!