Figuring out when to buy a home can be a daunting task. It seems like prices are high and your choices are limited.
Here’s a little food for thought if you’re considering buying a home soon. We’ve seen in the past two or three years that the Portland housing market is booming. Houses are selling fast and prices keep going up. There are some things being forecasted by Javier Vivas, director of economic research for realtor.com® that offer 2 great reasons to buy a home in 2018.
New predictions for 2018 indicate a slowing in housing prices gains and rising inventory levels. Economists indicate that we have low unemployment and are enjoying record levels of consumer confidence that indicate more buyers are feeling good about their financial situation. Here are 2 great reasons to buy a home in 2018.
Reason #1 is rates are still historically low.
There are indicators that rates will continue to climb in 2018. After years of record low mortgage interest rates we are seeing them climb. Last year the rate for the 30 year fixed climbed to 4%. Vivas predicts that by the end of the year we’ll see rates hit 5%. Of course that’s just his prediction.
It makes sense that higher intrest rates do impact affordability and that if rates go up real estate sales will be constricted. The longer you wait to buy, the more expensive it will get. If you’re considering buying a home, you may want to do it sooner than later.
Reason#2 is that the market is the market might be cooling, but….
The housing market might be cooling off just a little from last year, but it’s still predicted to climb. Vivas predicts that in 2018, home prices are predicted to moderate some. Here in Portland, housing prices have been increasing very fast. Recent data shows that Portland housing prices went up around 8.9% in 2017. Even if we see a bit of a slow down in market increases, there is still cause for concern. Especially if you’re in the low-to-moderate income range. As prices increase and interest rates go up affordability goes down. We’re already seeing a bit of a problem with housing affordability here in Portland.
If you’re considering whether or not you should buy a home, this will be food for thought. Right now rates are still historically low and the market is cooling a little bit. These are 2 great reasons to buy a home in 2018.
Our friends over at www.portlandchineserealtor.com can help you explore the market, if you need anything let us know.