The old saying goes that in real estate, the three most important things are location, location, location. But another important element is timing. People always fret about when the right time to buy a home is. Here are five reasons you should buy a home in 2014.
Qualified Mortgage Rules
New mortgage rules introduced by the federal government are aimed at helping ensure that when borrowers are financed for a mortgage, they’ll be able to pay back the loan. Although some people say these rules may make it harder to secure financing, the rules make it the most secure time to get a mortgage. Borrowers who do receive mortgages have a higher level of certainty that they’ll continue to be able to make their payments.
Although it’s far from setting a record pace, the economy has seemingly turned a corner. And although there isn’t a consensus that we’re 100% out of the woods just yet, USA Today lists four reasons why the US economy will continue to improve in 2014:
- The housing recovery seems real this time.
- State and local governments have healed.
- Falling energy prices and slower increases in health care costs are keeping inflation low.
- Washington has shut up – mostly.
- As the economy continues to grow, it may make buying a home even more attractive.
Buoyed by a rising economy, analysts predict that home prices will rise in 2014, which would make some buyers cautious about buying a home. But prices are expected to rise slowly, and if the economy continues to rebound, prices will rise more steeply after 2014, meaning that this year may be the sweet spot to purchase a home. And as home values rise, more homeowners will see their equity rising, giving them greater flexibility to sell their current homes and perhaps buy new ones.
Like home values, interest rates are expected to rise in 2014 as well, which may give some home buyers pause. On the other hand, those rates are expected to climb well into 2015, so it may make sense to buy this year before rates go even higher.
Although this is a reason to buy a home every year, the joys of homeownership cannot be overstated. According to Virtual Property Realty, “There is no one who can tell you what you can and cannot do with the property. Owning your home brings a deep sense of emotional satisfaction that no amount of money can ever buy.” Why wait? Buy a home in 2014!
What do you think? Does 2014 sound like a good time to buy a home? Let us know what you think in the comments.