Going forward in 2017, there are plenty of reasons both buyers and sellers should jump into the market.
Today I’m back with your latest market update! Let’s dive right into what’s been happening lately.
Interest rates have jumped up the last two months, and most experts are projecting that they’ll settle somewhere in the 4.5% and 5% range later on. This might cause buyers to get apprehensive about purchasing homes, so if you want to sell your house, you should put it on the market right now. If you wait, not only will the value of your existing home diminish, but later on in the year, as a move-up or move-down buyer, you’ll have to pay a higher interest rate on your new home.
In the video above, I’ve provided a slide depicting mortgage rate projections all the way into the first quarter of 2018.
The annual average for the 30-year fixed rate mortgage was 3.65% in 2016, which is the lowest annual average ever recorded by Freddie Mac. Even though interest rates are creeping up, it’s still a great time to buy. If you have considered renting because interest rates are going up, just know that rent will always be going up too.
As you can see in the next chart in the video, the median asking rent in our market has increased every year since 1988. Zillow just reported that renters paid an accumulated $475 billion in 2016, which is a 4% increase over 2015.
If you’re still not convinced that buying is better than renting, here are five reasons homeownership is a great financial investment:
- Mortgage payments can be fixed, while rents will only go up.
- The equity in your home can be a financial resource later on.
- You can build wealth without paying any capital gains.
- A mortgage can act as a forced savings account.
- Overall, homeowners can enjoy greater wealth and growth than any renter can ever can.
Owning a home is one of the most common ways households build long-term wealth. Instead of paying your landlord, you can pay yourself in the long run through paying down your mortgage. If you buy a house, you’re also capping your expenses. The taxes and insurance will go up a little bit, but your housing expense will remain constant.
If you or anyone you know is thinking about buying or selling a home, be sure to introduce them to me so I can help them. A great way to do this is by inviting them to our next Home Selling Shark Seminar. We’ll be holding two seminars in March—one on the 25th and one on the 28th. Both will be at the Hilton Garden Inn in Fort Washington, Pennsylvania. For more information, visit www.homesharkseminar.com.
In the meantime, if you have any questions, please feel free to give me a call. I would be happy to help you!