Why Buying Property RIGHT NOW makes sense
Do you want to "seize" the housing market? Here are 7 justifiable and great reasons why it is a great time to buy a home NOW:
Home affordability is at an all-time high. The median mortgage payment on the median priced home as a percentage of the median household income is lower than it has been in a generation! That is such an amazing statistic. It is hard to believe that it can or may go lower!
Mortgage rates are still at rock bottom, but they are slowly inching back upwards, which means monthly payments and total loan costs will spike upwards. Mortgage rates skyrocketed to their highest levels since August on January 25th, both as a part of an ongoing move in reaction to overnight events in Europe. Mortgage Backed Securities (MBS) [that most directly influence rates] opened in much weaker territory and continued to sell-off throughout the day(Monday,Jan28th). When MBS "sell-off," prices are falling, meaning investors are paying less for mortgages. This causes closing costs, rates, or both to move higher. Depending on the lender and the particulars of the scenario, many borrowers will be looking at actual adjustments higher in RATE today.(www.mortgagenewsdaily.com/mortgage_rates).
Rates have risen moderately from their all-time lows, making for relatively increased reward for floating at the expense of greater risks of loss. Rates could easily move higher or lower, and unscheduled, unexpected events can ultimately have the most say in the direction. Near term risks in 2013 include the upcoming debt-ceiling debate in Washington as well as the Fed's policy outlook regarding securities purchases. Extending The Debt Ceiling Deadline currently seem to be preventing a move back down in rate. Passage of such legislation could further support a rising rate environment.
Home prices are back on the rise. When looking at this statistic locally, Pawleys Island is no exception. When comparing the 4th quarter of 2011 to 4th quarter of 2012, the average sales price increased by an average of 27.54%, up from $310,000 to $395,360 Depending on what happens with the fiscal cliff - right around the corner - projections indicate stability in prices, drop in foreclosures and short sales, slight decrease in inventory, and the days on the market averaging around the same as the 4th quarter 2012. Indicators would suggest that the time is NOW to purchase property, and for a great price, too.
Sellers are motivated to sell NOW - this means that buyers have the upperhand. Banks are looking to dispose of foreclosed properties to homeowners who are competing with excess of inventory, buyers have negotiating power and untold choices.
Locally, it is the right time to buy before the "busy" season of homeselling once again begins in the Pawleys Island area. Typically in March, the home buying and selling inches up, meaning a price increase, and usually an increase in inventory as well, but mostly prices will rise. This strategy is because there will be many more buyers in the area due to vacationers who wish to become residents of the area, wether it be a second home, retirement, or just an investment property.
Financing is readily available at the moment, and banks are ready to lend to well-qualified buyers. With all the changes going on, who knows how long this will last. Take advantage NOW!
It is no secret that today's market is not only a buyer's market, but a competitive one too. With all the political and law changes going on, it is super important to have an agent that works hard, but is educated, experienced, and tech savvy. With "Generation X" now in the housing market, almost anything can be researched. It is more important than ever to have an agent that represents you wether buying or selling property that can keep up with the latest in real estate, but also able to use technology to their advantage. I have been in the real estate industry for over 10 years, and still will do what it takes to make sure that every client is happy with the end result in their real estate goals. I specialize in the Pawleys Island area, so if you need any real estate related information, please don't hesitate to contact me at your convenience. Tara Melech - Keller Williams Realty - (843) 907-8787