This year is turning out to be an opportune time for home buyers to purchase a home. Not only are interest rates relatively low, but investors are turning away from buying property for a profit. With less competition, 2014 is a good year for buyers to purchase a home.
If you have been on the fence about buying a home then you are going to want to understand why now is the best time for a home buyer. The past few years have been a bit chaotic. Luckily, the market has stabilized and is in prime position for the average home buyer.
Investors moving away from purchasing home
Last year many families were prevented from purchasing homes due to the number of investors in the market. In fact, last September saw a record high number of investors buying homes, accounting for 14 percent of sale, according to a report RealtyTrac. Investors are always going to be around to purchase homes for a profit, but many investors have cut down on buying homes in 2014. Fewer investors competing against home buyers who are actually going to live in a home helps give more power to the average home buyer. Now buyers do not have to worry about being out bid by someone with substantially more money.
Interest rates lowering every month
Interest rates are steadily on the decline, giving even more power to the average home buyer. Recent data from Freddie Mac revealed that the average rate for a 30-year fixed home loan is at 4.23 percent, down from 4.53 at the start of the year. Expect this trend to continue for a short period of time, but do not be foolish to think it will last forever. The drop in interest rate allows buyers to feel comfortable locking in the rate they are given by lenders. A relatively low interest rate makes monthly mortgage payments more affordable, and can ensure buyers borrow within their means.
The economy is in a good position
What does the economy have to do with buying a home? The answer is everything. The fact that, as of Jan. 2014, the unemployment rate is at an all-time recent low of 6.6 percent helps give both lenders and buyers a sense of security. Both parties can feel confident in knowing that work is available, and that the borrower shouldn’t have a hard time following through with making all payments on time. If someone were to lose a job, he or she should not have a hard time finding a new one. The fact is simple, there is more money circulating in America, and the more money circulates, the better shape the economy is as a whole.
Home prices on the rise
Home prices have been on the rise since last year, therefore, there is more than enough of a reason to buy a home sooner rather than later. As the year progresses you can expect the overall value of homes to increase. As noted, more people are finding jobs and securing steady income. As the economy continues to grow and prosper, people are going to have more money to buy property. When this happens the number of buyers in the market increases, thus creating a buyer’s market. In a buyer’s market there is much competition among people to buy property, and it can prove difficult to buy a home during this time. So take advantage now and look into buying property if you have been thinking about it for some time.