Four Reasons Why Buying a Home Should Be On Your New Years Resolution
If you have been contemplating on buying a home, 2016 is a right time to take the plunge. Even though home prices have started to go up, you still have a good chance of picking up a great deal.
A number of factors are make 2016 a good year to buy a house.
- Real estate prices will finally begin to slow down the rise.
Real estate prices have been climbing year over year. But they are slowing down, which could bring a flood of buyers.
“We have the potential for about six million home sales just through the months of April through September; that is basically impossible to do,”
- Rents are expected to keep rising.
Rents in Jersey City are highest they have been ever and this trend does not seem to be slowing down. This means buying will be cheaper than renting. If you are buying a $650,000 2 bedroom Condo in Jersey City Downtown, or a 2 Family home in the heights. This is a better alternative than renting, especially if you have good income and credit.
- Cheap Mortgage might finally disappear.
A strong real estate market, stable unemployment may finally convince the Fed to raise the rates. Might not be too high but the trend is looking for increase in the first quarter of 2016.
- More homes will hit the market.
The slowdown in the home prices drives the home owners to sell. They understand the won’t sell and have the house double in value next year, leaving them kicking themselves. This sense of comfort will bring more home sellers on the market.
Mr. Smoke states “Because of the price appreciation they have experienced, you will have more sellers put homes on the market next year,”
I personally am a solid believer in being a home owner but with a twist. Trends have changed and even homeownership trend has changed. Just as in the jobs market, people are not staying at one company for 30 years but zig sagging their career to move up faster. Same applies for home ownership. We don’t buy to hold for 30 years but 3-5 years to save on the rents, depreciate income and also enjoy capital appreciation.