If you’ve been toying with the idea of buying a home or any kind of property in the Greater Philadelphia area, now is the time to act. Industry experts are very optimistic about the future of the real estate market here as growth seems genuine, strong, and sustained.
Homes are Selling Quickly
Although selling a home quickly is typically better news for the seller than the buyer, there are some perks to consider. If homes are selling relatively fast, this means that a buyer is more likely to accept your bid, even if you bid slightly under the asking price. In the end, you’ll get a better overall investment from day one, and in some cases, you can build a significant amount of equity in a very short period.
Rents are On the Rise
If you’re still renting, it’s time to reconsider. Mortgage interest rates are still relatively low, but rent prices increased by about 4% throughout 2016. This means that your mortgage payment may turn out to be only two-thirds of your rent cost – and for some people, that figure is even less. Imagine being able to save money every month while owning your own home. That’s exactly what the Philadelphia real estate market can provide.
Interest Rates are Expected to Increase Steadily
The Federal Reserve just increased its rates by 0.25%, and many experts agree that the Trump presidency will allow these rates to continue to climb slowly but steadily through all of 2017. In cases like this, it’s better to act sooner rather than later, as even a 0.25% increase could mean a difference of tens of thousands of dollars in interest over the course of your loan. Interest rates are not slated to fall again, so by acting now, you can essentially lock in your rates while they’re still low.
Home Values are Low, But Rising
The Greater Philadelphia area is still recovering from the housing market crash, but it’s recovering nonetheless. Right now, home values are still on the low end of the scale when compared to homes at the national level, but this is changing. It’s a buyer’s market in this regard; buying a home now means that you can enjoy added equity as the value of your property continues its upward trend. Waiting to buy may result in higher prices and less appreciation in the future.
Start Saving for Retirement Sooner
Financial experts agree that today’s generation hasn’t been as prudent about saving for retirement as generations past. Of course, this doesn’t include the fact that things like pensions are on the decline, and more people will need to rely on their own savings post-retirement. Buying a home earlier rather than later will help you start saving right away – and in more ways than one. Not only should you own your home outright before retirement, but you should also have significant equity. Buying now will help you get a head start.
As you can see, while you may have your reasons for postponing a mortgage application, there are more reasons to get it filled out. Rent prices are going up in the Greater Philadelphia area, which makes renting more expensive than ownership. When you factor in interest rates that are expected to rise throughout the year and low home values that are on the rise, it only makes sense to buy now.