If you are
thinking about purchasing a home right now, there are three questions you
should ask before purchasing in today’s market.
This truly
is the most important question to answer. Forget the finances for a minute. Why
did you even begin to consider purchasing a home? For most, the reason has
nothing to do with finances. A study by the Joint Center for Housing Studies at
Harvard University reveals that the four major reasons people buy a home have
nothing to do with money:
A good place
to raise children and for them to get a good education
A place
where you and your family feel safe
More space
for you and your family
Control of
the space
What
non-financial benefits will you and your family derive from owning a home? The
answer to that question should be the biggest reason you decide to purchase or
not.
When looking
at future housing values, Home Price Expectation Survey provides a fair
assessment. Every quarter, Pulsenomics surveys a nationwide panel of over one
hundred economists, real estate experts and investment & market strategists
about where prices are headed over the next five years. They then average the
projections of all 100+ experts into a single number. Here is what the experts
projected in the latest survey:
Home values
will appreciate by 4% in 2015.
The
cumulative appreciation will be 23.5% by 2019.
Even the
experts making up the most bearish quartile of the survey still are projecting
a cumulative appreciation of over 15.1% by 2019.
A buyer must
be concerned about more than just prices. The ‘long term cost’ of a home can be
dramatically impacted by an increase in mortgage rates. The Mortgage Bankers
Association (MBA), the National Association of Realtors, Fannie Mae and Freddie
Mac have all projected that mortgage interest rates will increase by
approximately one full percentage over the next twelve months.
Bottom Line
Only you and
your family can know for certain the right time to purchase a home. Answering
these questions will help you make that decision.Call Charonda Wills, SellState Alliance Realty Today at 719-930-4653 and Visit www.CharondaWills.com
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