Winter is a great time to buy

Much of the real estate analysis is pointing to continued tight inventory in the spring.  Winter can be a great time of year to buy if you are ready.  It may also be the best opportunity for first-time buyers who also benefit from lower interest rates.  Don’t be left sitting on the sidelines in 2018.

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Inventory Issues
Screen Shot 2017-12-15 at 1.23.20 PMLow inventory across the country will continue to remain a challengefor homebuyers in 2018. Experts state that low new housing starts and soaring prices are keeping purchase numbers down. First-time buyers and millennials are the most impacted by the lack of affordable housing. As more homeowners see the difficulties of affording a new home in this climate, they may choose to stay in their current homes longer, which will also impact inventory. Based on a recent survey, Zillow predicts that the shortage of affordable homes will also push housing prices to climb more than 4% in 2018, exacerbating the problem and forcing millennials to remain renters.

Everyone has been talking about the tight inventory but I think we are OK calling it a straight-up inventory crisis at this point. We just don’t have enough homes. – Svenja Gudell, chief economist at Zillow

Rise in Interest Rates
Screen Shot 2017-12-15 at 1.34.22 PMSpeaking of rising interest rates, economists at the MBA predict mortgage interest rates on 30-year fixed-rate loans to rise to 4.6% in 2018, and to more than 5% in 2019. The Federal Housing Finance Agency (FHFA) agrees that rates will hit the mid-4% range next year and mid- to upper 5% range by 2020.


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