3 Powerful Reasons To Buy A Home Now

Buying and selling a house is a big endeavor. Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a home. Let’s evaluate your needs and see if your situation calls for buying or selling now or in the  future. Call or text 714.343.9294 or email me at [email protected] and visit stovallteam.com.  We are here to invest in your family’s future with you.  At Stovall Team we are  focused on helping you understand the process while helping you find your dream home Here are three major reasons to buy in our current market.

1. Affordability Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, affordability is determined by three components: Price, Wages, and Mortgage Interest Rate. Prices are up, but so are wages – and interest rates have recently dropped dramatically (see #2 below). As a result, the National Association of Realtors’ (NAR) latest Affordability Index report revealed that homes are MORE affordable throughout the country today than they were a year ago.
2. Mortgage Interest Rates. Mortgage rates have dropped almost a full point after heading toward 5% last fall and early winter. Currently, they are below 4%. Additionally, Fannie Mae recently predicted the average rate for a 30-year fixed mortgage will be 3.7% in the second half of 2019. That compares to a 4.4% average rate in the first quarter and 4% in the second quarter. With mortgage rates remaining near historic lows, Fannie Mae and others have increased their forecasts for housing appreciation for the rest of the year. If home price gains are about to re-accelerate, buying now rather than later makes financial sense.
3. Increase Family Wealth Homeownership has always been recognized as a sensational way to build long-term family wealth. A new report by ATTOM Data Solutions reveals: “U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018. The average home  seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of original purchase price.”

The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.  With affordability increasing, mortgage rates decreasing, and home values about to re-accelerate, it may be time to talk with Stovall Team to determine if buying now makes sense for your family.

Sources: Micah Stovall, Stovall Team, National Association of Realtors, ATTOM Data Solutions, Fannie Mae