1. Although the market is rapidly heating up many buyers are still asking the question “should I buy now?”
While price is the major concern for anyone selling a home, cost should be the primary focus of a buyer. That means you must take into account what your monthly payment will be, considering not only price of the home but the interest rate of your loan as well. Waiting for prices to bottom out while rates are increasing can and will wind up costing you more over the life of the loan. Fannie Mae, Freddie Mac, the National Association of Realtor, PMI and the mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. It’s best that you meet with a mortgage professional to help you determine what an interest rate increase will cost you based on the size of your loan in addition to meeting with a real estate professional to discuss market trends. This information will help you to make the best decision for you.
2. As we are all beginning to witness the increase in activity many buyers (and sellers) are asking “when will I begin to see appreciation?”
Appreciation varies from market to market so it is important to sit down with an expert in your market area to look closely at local pricing trends. Nationally, there are indications that values will begin to rise this year. National Association of Realtor (NAR) projects home prices to grow slightly, .5% in 2011. Marco Markets LLC, a financial technology company, recently asked more than 100 housing industry experts to project housing prices through 2015. The results, released in the company’s 2010 Home Price Expectation Survey, show that experts think prices will start increasing in the second half of 2011, reaching a cumulative appreciation of more than 10% by 2015. Tucson area experts are expecting up to 3% appreciation this year and again next year.
3. Some people right now are giving a heavy look to the differences between buying and renting and asking the question “does buying really make better sense than renting?”
Forget about finances for a minute. Why did you ever consider buying a home? The Fannie Mae National Housing Survey shows that four of the biggest reasons people buy a home have nothing at all to do with money. They want a place to raise and educate their children, they want a place where their family will feel safe and secure, they want to have plenty of living space and outdoor space, and they want to have control over their space. What non-financial benefits will your family have from owning a home? Your answer to that question should be the reason you choose to buy or not. The cost of a home will probably remain relatively unchanged when you are in even when home prices go up. Verses the unknown of rising rents and the possibility of having to move before you are ready. There are many financial benefits to being a home owner in addition to the tax benefits, equity growth etc. However don’t allow money to be the only factor in making the decision that’s best for you.
If you are considering buying a home I would love to talk with you more about our local Tucson marekt!
Renee
