When should you buy the home you’ve been dreaming of? Now.
When should you buy the home you have been dreaming of? According to Jonathan Smokes, chief economist at realtor.com, you should buy now.
He said that the October employment report showed great improvement in US job creation. More jobs means more people moving away from their parents, making money and ready to purchase a new home.
According to Smokes, based on US census date, many people over the past two years were renting. However, homeownership shows signs of recovery in the third quarter of this year. In more than three quarters of the country, it is currently cheaper to buy rather than rent. Rent prices are even rising year over year at double the pace that listing prices are.
Mortgage rates in the US remain very low. However, they are poised to rise sometime this year. Home prices are already rapidly rising as well.
This answers the question of when you should buy a home. Now, and definitely sooner rather than later. According to Smokes, if you qualify for a mortgage and can afford a down payment and closing costs, and you intend to live in your new home for an amount of time that will cover transaction costs of buying and selling, you should buy as soon as possible.
If you were considering waiting until spring to buy a home, you are not alone- and you may want to change your plans. On realtor.com, the percentage of participants in October who said they planned to buy in seven months to a year was the highest it has been all year. That means that supply may be worse in the spring, prices will have risen, and mortgage rates may be higher too.
Today, you have less competition and more choices. Check out the inventory of homes available in Miami now, contact a RE/MAX Paradise agent, and when we ask when should you buy a new home? The answer is now.