2015 is shaping up to be a great time to list or purchase a new home. Whether you’re a first-time homebuyer or current homeowner, there are many compelling reasons to make a move in the current real estate market. Here are just a few:
1)The market has recovered. Following the enormous real estate boom and subsequent bust in the early years of the new millennium, the real estate market is finally equalizing. That’s great news for home owners who purchased property when prices were at an all-time high, only to see their equity disappear when the bubble burst. Home owners who have felt trapped due to being “underwater” on their mortgages can begin to see some relief.
2)Winter is finally behind us. Spring is historically the busiest time of year for the real estate market, and this year is no exception. We may have seen an initially slow start to the beginning of the season as homebuyers continued to hibernate, waiting for the vestiges of winter to clear. But with winter in the rearview mirror, there is a great uptick in market movement.
3)It’s a fortuitous time to sell. If you’re a seller, the great news is that it’s a seller’s market out there, with low amounts of inventory. Prospective homebuyers are competing for available properties, which means that properties are bound to see price increases and bidding battles as buyers duke it out with competing offers.
4)It’s a fortuitous time to buy. If you’re a buyer, interest rates continue to be very attractive. In fact, they are still close to historic lows. Meanwhile, lenders are loosening the reins on mortgage qualification requirements, meaning that there are options even for prospective buyers without stellar credit and the means to fork over a sizeable down payment. And PMI (private mortgage insurance) fees are lower for buyers who can’t afford that 20% down.
5)Renting is expensive. Even as mortgage interest rates remain low, rents are continuing to climb in many markets at a pace that is not matched by household income. This means that if you’re currently renting a property, making an investment in a home now could actually save you so money in the short term as well as in the long term.
6)Home ownership is (still) a great investment. For many people, a new home is the single largest investment they will ever make. Creating equity is a smart financial move, but home ownership goes beyond a fiscal investment in the future. Put simply, home ownership feels good. Having a place of one’s own is a source of pride and attachment. For many people, it represents the realization of the American dream.
If you’re thinking of buying or selling a home this year, contact your real estate agent to get the ball rolling. He or she will be able to provide you with sound advice about how to make this year’s market work for you.
Written by: Hans Briggs
Courtesy of: realtytimes.com