There are BIG reasons why you should buy a home now, in 2018 and NOT WAIT! We have been advising our clients for a couple of years to get off the fence and buy. Well, the time is here!
It is no surprise to me but life should only get more expensive for borrowers in 2018. Interest rates on nearly all financial products — from mortgages to credit cards to personal loans — will continue to rise in 2018. The rate for a 30-year fixed mortgage broke the 4% mark last year. And with economic growth continuing to carry momentum, we'll probably see at least two to four more rate increases throughout 2018. Rates are anticipated to hit 5% by the end of the year.
Prices are climbing, but not crazily fast! Home prices have soared over the past few years, pricing otherwise well-positioned buyers out of high-cost areas and leading some experts to cry "bubble". But in 2018, price increases are expected to moderate. We believe we could expect a home price increase of 3.2% year over year, after finishing 2017 with a 5.5% year-over-year increase. Existing-home sale prices are predicted to increase 2.5% year over year.
Inventory levels will begin to increase! An inventory shortage has plagued the U.S. housing market since 2015, forcing some buyers to settle, and keeping others out of the buying game entirely. The majority of inventory growth will happen in the middle- to upper-tier price point, in the ranges of $350,000 and $750,000 and above $750,000. New home construction is also expected to expand.
So give us a call if you have thought about buying or selling! Now is the time! 830-743-0464 or 830-708-4593