CBS News is reporting that 2014 is a good year to buy a home. If you’ve wanted to buy a home but are holding off, 2014 might be the time to get started. Interest rates, home prices, mortgage qualifications, and rising rents are just a few reasons to consider buying in 2014.
Interest Rates
Interest rates continue to be low and affordable. Though we have seen them rise throughout the past year from their historic low, the rates are still low enough that serious buyers should take note.
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However, as interest rates rise, many have kicked themselves for not purchasing in 2012 or 2013. You wouldn’t want to regret not purchasing now while interest rates are still relatively low compared to the past.
Home Prices
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As the article quoted earlier from CBS News stated, home prices have climbed in the past 12 months by an average of 13.6 percent nationally. How much are home prices expected to rise in the next 12 months? They are expected to rise by 5% in the coming year.
At the same time, home prices are still affordable. "Affordability is still good compared to any time over the last 50 years. Mortgage rates are still around 4½ percent; that's not high. Homes are still roughly, in real terms, where they were 25 to 50 years ago," according to Robert Shiller, Case-Shiller Index co-founder and Yale University professor of economics.
Why Buy a Home in 2014?
Another reason to consider purchasing a home in 2014 is the housing safeguards that are now in force. Changes have been made in the law that protects buyers from the purchasing a home that they can’t afford. Measures have been taken that reduce the possibility of foreclosure down the line.
You will want to work with a real estate professional who understands the area. We have worked with buyers, sellers, and investors. We understand the current market trends in Orange County. Contact us and we can discuss the benefits of purchasing or selling your home in 2014.
