Knowing when to buy a house is one part of the process. But it’s an important one if you want to get the most out of what’s likely your biggest financial investment.
So should you buy a house now, or wait until 2018? This is a question that buyers looking for new homes in Little Elm TX are asking due to the current trends in the housing market.
Industry forecasts may suggest that buyers should purchase their homes sooner rather than later if they want to get a higher return on their investment.
More importantly, 2018 isn’t very far away. So knowing what to consider now may save you money while ensuring that you get the home you want.
Rising Home Prices
Before deciding if you should buy a house now or wait until 2018, you need to consider a few important factors. These include current costs of borrowing for your mortgage, the current state of the housing market, and price trends.
Home prices are always fluctuating in response to the marketplace. So looking at the current prices of homes is critical to your buying decision.
The National Association of Realtors has reported an increase in the price of U.S. homes by 5.8 percent in May, compared to a year ago.
Although a slowing down of this increase has been observed, the prices of today’s homes are expected to continue to rise in the majority of cities in the country.
So although prices are increasing slower than they previously were, they’re still going up. This rise is expected to extend throughout the next year, and home buyers should keep an eye on the market to avoid sudden increases in home prices.
Local vs. National Market Trends
Buyers must distinguish between national and local real estate factors. Although you might see certain trends occurring at the national level, they may not reflect what’s actually going on in your local area.
Your market research should focus on local trends in order to accurately determine the health of your local market and ensure that you buy your new home at just the right time.
While some cities may experience significant real estate market growth, others can remain static or decrease in value. Know your local market before deciding to buy now or in 2018.
The Cost of Borrowing for Your New Home Purchase
The cost of borrowing money is also expected to rise in the coming year. This increase may have slowed down, but price-conscious buyers should still watch the changing mortgage rates between now and 2018.
The rate for 30-year fixed mortgages was about 4.2 percent at the start of 2017. In June, that rate dropped to 3.9 percent, indicating that now might be a good time to purchase a new home before mortgage rates increase.
As the economy strengthens, the rates of these mortgages are expected to increase. Analyst expectations and Federal Reserve policy changes should be monitored closely.
Some predictions place the 30-year mortgage rate at about 4.4 percent by the end of 2017. So you may secure more buying power now as opposed to waiting until 2018.
You’ll find a variety of new homes in Little Elm TX to choose from in the master planned community of Enclave at Lakeview. Landon Homes has released a number of over-sized and cul-de-sac home sites in this neighborhood, located just east of Lake Lewisville.
Contact Landon Homes to learn more about the better built, affordable homes for sale in Little Elm, so you can become a proud homeowner soon.