As the weather turns crisper, the leaves change color and the days shorten, you may be wondering if buying your New Jersey dream home NOW is a good idea. Newsflash: It’s a GREAT idea! Here, Team Nest Builder lists four strong reasons to buy a New Jersey home today, instead of waiting.
Prices Continue to Rise
CoreLogic’s latest Home Price Index reports home prices appreciated by 6.7% over the last 12 months. The same report predicts an increase in prices at a rate of 5.0% over the next year.
The bottom in home prices came and left. Home values continue to appreciate for years. Waiting no longer makes sense.
Mortgage Interest Rates Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage currently hover around 4%. Most experts predict a rise in rates over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors speak in unison, projecting an increase in rates by this time next year.
An increase in rates impacts YOUR monthly mortgage payment. A year from now, your housing expense increases if a mortgage is necessary to buy your New Jersey home.
Either Way, You’re Paying a Mortgage
Some renters hold off on a home purchase because they’re uncomfortable taking on the obligation of a mortgage. FACT: Unless you’re living rent-free, you ARE paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment acts as a form of ‘forced savings’ allowing you to possess equity in your home; equity you can tap into later in life. As a renter, you guarantee your landlord gains that equity, not you.
Ready to put your housing cost to work for you? Buy now!
Move Forward With Your Life
Two major components determine the “cost” of a New Jersey home: the price of the home and the current mortgage rate. It appears both are on the rise.
But what if they weren’t? Would you wait?
Look at the actual reason you’re buying and decide if it’s worth waiting. Whether you want a great place for your children to grow up, a safer environment for your family, or control over renovations, postponing your New Jersey home purchase may not be prudent.