If you’ve been wavering about whether or not to purchase a home of your own, 2016 might be the year to take the plunge. If your New Year’s resolution is to become a homeowner, this is a great year to buy. With home inventories increasing and a good job market and financial conditions, 2016 is shaping up to be an excellent year to get into your dream home.
Here are four reasons why 2016 is the year to become a homeowner:
Rent costs are high: Rent prices have been rising the past few years, and are expected to continue climbing in 2016. What this means is in many cities, owning is simply cheaper than renting. While saving for a down payment can be a complicated financial maneuver for some, at the end of the day, a mortgage might be the better deal for many current renters who are ready, willing, and able to purchase. And the money spent on your mortgage is paying for your own asset that will usually appreciate in value, rather than going to a landlord.
Interest rates are low: Interest rates are historically low, and potential buyers cannot expect that to last forever. Buyers might not see interest rates this low again in their lifetimes, so now is the time to jump on them. Chances are you’ll see good rates throughout the year, but the sooner buyers lock something in, the better deal they can expect to get.
Home prices are stabilizing: More homeowners are expected to place their homes on the market in 2016, which should provide a boost to inventory and help in steadying rising prices. Home prices have been climbing for years, but the market seems to be experiencing a cooling off period on which potential home buyers can capitalize.
Mortgage terms are clearer: Easier to understand loan terms and paperwork at the closing table should make things go more smoothly for homebuyers, especially first-timers. The recent integration of several mortgage closing documents will help buyers better understand their financial commitment and keep surprises from showing up at the closing table.
The time is now. Speak with your Realtor today about buying a home in 2016.
The Greater Chattanooga Association of Realtors is “The Voice of Real Estate in Greater Chattanooga.” The Association is a regional organization with more than 1,500 members, and is one of more than 1,400 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. The Greater Chattanooga Association of Realtors services Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade, and Walker counties in northwest Georgia. For more information, visit www.gcar.net.