Purchasing a new home, whether you’re a first time homebuyer or a season veteran, is a big deal. Choosing the location and figuring out financing, among other things, can be intimidating, however, the benefits and rewards are worth it!
As 2018 marches on, analysts believe now, more than ever is the time to buy. For starters, the record low interest rates that had been lingering on for the past couple of years were bound to increase, which they have. We are now seeing rates above 4% and as the Feds continue to increase these throughout the year, interest rates are expected to be around 5% by the end of 2018. Not that this is a scare tactic to the buyer, the interest rate can make or break the ability to purchase.
Secondly, prices are expected to climb this year. While the pricing is unlikely to make a rapid escalation, an increase will still occur. Location plays a large factor of the fluctuation, so that this into consideration. Javier Vivas, director of economic research for realtor.com “forecasts a home price increase of 3.2% year-over-year, after finishing 2017 with a 5.5% year-over-year increase” (Realtor.com). Whether the increase is large or small, it will occur in 2018.
As we saw in the 2017, the housing inventory was exceptionally low. We are expected to see an increase as 2018. More options will be available in both the resale and new construction sector of the market. This is ideal for buyers.
To learn more about the housing market predictions for 2018, read the full article here.