No better time to buy than now: With home prices on a steady race, it is important to watch and understand the affordability trajectory.
The Case-Shiller Home Price Indices was just released. As suspected, it confirms that U.S. home prices will continue to climb at a moderate pace. There is a strong consensus among several other home price indicators that prices nationwide are appreciating at a steady rate of around 5-6 percent annually. Amid a growing U.S. economy and low interest rates, another busy spring home buying season is almost upon us.
This continuing price growth should be of encouragement to anyone planning to purchase a home. The spring housing market already appears to be off to a good start. The latest February existing-home sales from the National Association of Realtors indicated total sales grew 6.4 percent from a year ago.
Empowered by an incredible access to housing credit-and not to mention the average mortgage rates remain at record lows (below 4 percent)- there is good reason to expect thing spring’s first-time home buyers will be a significant market driver.
For the dominant group of repeat buyers, rising affordability will grow your investment in value, and with more equity to be extracted when selling, it also means larger down payments.
In 2016, home prices are expected to rise another 5-6 percent so, for those who wish to participate in the rising housing market in the coming months: there is now better time to buy than now.