Spring is officially here, which means that the 2016 buying and selling season has started. Current market trend reports note that the economy is experiencing a steady increase, making 2016 a ONEderful year for both buyers and sellers to purchase their dream home. This is great news for real estate professionals as well! Our number ONE agents will have a busy year ahead of them for business, and here’s why:
Low Mortgage Rates are a Good Sign for Buyers
Because home prices are only forecasted to continue to rise (without an increase in inventory), renters who are considering purchasing a home in the near future should act now. ONE of the major reasons has to do with low mortgage interest rates, which, according to this Time article: “[Mortgage interest rates] are near historic lows — just over 4% as of this writing — and home prices, which while up from the depths of the Great Recession, are expected to rise in the next few years.” A low mortgage rate presents ample opportunity for prospective buyers.
Benefits of Home Ownership
Experts from RealtyONEGroup’s operations team implore eventual homebuyers to consider the following: When renting a property, you never gain appreciation for your investment. A home is something nicer you can own while earning considerable tax credit.
While there are several factors to look into when deciding whether to rent or buy, tax implications are an important variable. A $1,000 monthly mortgage payment may seem steep but it’s reducing your tax liability with pre-tax dollars and you gain appreciation in your home. When you rent a place for the same price, you lose those two benefits.
There’s also the opinion of Jonathan Smoke, Realtor.com’s Chief Economist, who anticipates: “Rental costs are expected to increase 1.9% in the next year and then 2.2% a year for the next decade.” By paying a higher rental rate per month, renters are essentially removing themselves from a decent chance at home ownership. The decision to buy or rent is tricky and ultimately ONE of the most important decisions to make in your life. A seasoned real estate agent can help you navigate through the ever-evolving market and land the best deal.
Don’t just take our word for it: Check out this price calculator from Smart Asset to see if the benefits of buying outweigh your current rent rates.
Why Now Is The Time to Sell…
Arkadiusz Halaj, Market Analyst for RealtyONEGroup, reports that since 2009, the number of homes sold per year has gone up by 33.6%, indicating a stabilizing economy. The average home price has risen by 32.37% from the post-market crash era as well. This trend is predicted to rise through 2016, making this year much more profitable for those interested in selling their home. By enlisting the help of a listing agent, sellers boost their potential to receive the best possible offer for their property.
Unless You Fall in ONE of these Two Categories
However, Halaj notes that for those who purchased a home between 2005-2008, now is more than likely not the best time to sell. Chances are your home was purchased at the height of the market shortly before the crash — this means that the value of your home has not yet risen to the market price you originally paid. Selling now could result in a loss on your part. Additionally, if you currently live in a booming housing market such as Denver, Honolulu or Southern California, it might behoove you to sit on your investment.
Looking to buy or sell in 2016? Contact a RealtyONEGroup agent today to find your dream home! http://bit.ly/1MGCOfp