Surprising numbers of potential home buyers are jumping off the fence and buying Portland homes. They see the housing prices starting to rise and want to get in the game before the affordability is gone. They see the mortgage rates and want to act before they spike again. If you are still on the fence, you might want to rethink your strategy and take a real look at potential Portland homes.
Here are two crucial reasons why you might not want to wait any longer:
Rates are Still at an All Time Low
Thanks to the Federal Reserve buying $1.23 trillion worth of mortgages, interest rates have been kept somewhere between 3.5% and 3.5% for a 30-year fixed-rate loan. That’s about 0.4 % lower than it might be without the Fed’s help. It isn’t economically sustainable for the Fed to continue to keep rates this low. A 1 point rise in rates would mean that buyers would be loose 10% of buying power. That is $30-$40k for the average Portland home.
Rising Home Prices
Home prices, predicted to rise another 10% in 2017, will also make some difference in overall cost. Putting the rising home prices together with the currently low interest rates, you still have a chance to get a great home at a great deal – for a little while longer.
Waiting could mean waiting through another housing cycle and there are so many unknowns, consider where you are now:
- Do you have good credit?
- Are you pre-approved (not pre-qualified) for a mortgage loan?
- Do you know how much home you can afford?
- Are you certain (or as certain as you can be) of your job stability?
It’s very possible that the market will never be better than it is right now for buyers. If you can afford to buy now, but are waiting for things to get even better, reconsider – you might wait yourself into a market you can no longer afford!
Ready to take advantage of this market and purchase one of the Portland homes for sale? We den help! Also check out more resources on the Portland Real Estate Blog.