Reasons to Buy a House This Year
The price jumps during the recent months have created an attractive atmosphere in the country’s housing market. Yet even with much good news, many buyers are still hesitant to jump in on the bargains. There are, however, reasons why buying a home in 2013 is a good move.
First of all, there are few homes available. According to the National Association of Realtors, the prices of homes during the first quarter rose in many of major metropolitans in the country. This is a sign that the recovery of the housing market has a broader scope that previously estimated. While there are still areas in the country left out, many are offering attractive deals.
The price jumps can be attributed to the number of buyers. The demand has surged during the early parts of the year, causing tight supply. This means that there are fewer homes available. For buyers who want to take advantage of the good atmosphere, there no better time to pick than this year. Although builders are continuing constructions to replenish the inventory, the declining number of homes might cause a hurdle for many.
Second, foreclosures are still on the rise. The sluggish foreclosure process is causing many distressed properties to remain underwater. Recent reports, however, are showing that foreclosures are starting to “ebb.”
The last reason is the loan. Mortgage rates have increased in the past week causing many buyers to jump in before they get priced out. Those who signed contracts for home not yet constructed may see themselves in a tight situation. Fortunately, the increase in mortgage rates discourages refinance loans. In the past, low rates attracted such loans and lenders typically responded by turning their focus on refi. Now that mortgage rates have jumped to ward off refinance applications, lenders are looking for alternatives. This means that many of them are likely to loosen their tight mortgage requirements therefore attracting more borrowers.