Have you’ve been on the fence about buying a new home this past year? Well, 2016 may be the right year to make it happen because it is projected to be a great time to buy a new home. A number of factors are coming together, making this a good time to buy according to CNN on this real estate hot button topic.
Home pricing slowdown
More homes available overall
The slowdown in home price increases could prompt more current homeowners to list their existing homes for sale, due in part to the price appreciation that certain owners have experienced in 2015. The new home market is also expected to grow in the coming year with homebuilders focusing more on middle-range, move-up homebuyers and new millennial families, which should boost available inventory.
Mortgage rate increases
Now that the Federal Reserve has begun increasing interest rates, the window for record low mortgage rates should begin to close. The analysts at CoreLogic think the Fed will probably raise short-term interest rates by one percentage point gradually over the year. While rates are expected to go up gradually, higher rates push up borrowing costs and monthly mortgage payments. “You are likely to get the best rate you will possibly see, perhaps in your lifetimes through the majority of next year, but certainly, the earlier the better,” according to the chief economist from Realtor.com. For first time home buyers, the mortgage interest rate often influences the total amount of payments and value of the home loan for which they can qualify.
Rent costs remain high
Rent prices are expected to continue to climb in the new year, which means in most cities, buying will be cheaper than renting. Even though mortgages could get more expensive, buying might still be the better deal. Interest rates would need to rise to around 6.5% for the cost of buying to equal that of renting on a national level.
New Atlanta homes available now
If you’re still deciding or have already decided that 2016 is the year that you are going to buy a new home then we want you to consider Brock Built homes of Atlanta. We have new homes available now with 2016 homebuyer bonus incentives being offered on a limited basis and qualifying conditions. We offer top quality homes, built by a family business of local Atlanta homebuilders with 30+ years of experience. Our dedication and commitment to the homes we build and who we’re building for is second to none. Contact us now for more details.