Why You Should Buy a Home in 2018
While the U.S. financial crisis began over 10 years ago, many Americans are still a little worried about the idea of buying a home. After all, the crisis led to home prices falling more than 40% in some of the country’s top markets -- and no one wants to buy something that will drop significantly in value just a few years later.
If you’re still nervous about buying a home, though, you probably shouldn’t be. While prices have been rising gradually for the last few years, most experts don’t necessarily think that’s a cause for concern, especially considering that the U.S. economy is pretty strong right now and demand for homes is growing each year. So, if you’re considering buying a home, 2018 could be your year! Keep reading to find out some of the top reasons why.
New Home Sales are Increasing, Demonstrating a Strong Market
High sales numbers for new homes is one of the best indicators of a strong housing market -- and that means it could be a good time to buy. For example, March 2018 new home sales were a surprising 8.8% above March 2017’s numbers. Plus, new home sales also increased in January and February 2018 -- meaning that the trend of increasing home sales could easily continue through the rest of the year, keeping the market strong and stable.
Many Young People are About to Enter the Housing Market, Which Will Likely Grow Demand
First time home buyers have always been an essential part of the market for home purchases, and millennials are no different. 25 - 29-year-olds and 30 - 34-year-olds are the two largest groups by age in the U.S.-- and many of them are going to want their own home.
With millions of millennials potentially entering the housing market in the next 10 years, demand is likely to steadily grow, and with it, average home values. That’s another reason why it could make sense to buy a home now, while the market isn’t yet completely flooded with buyers and prices are still reasonable.
Plus, the expected increase of millennials looking to purchase a home soon means that if you buy now, your home has a good chance of appreciating dramatically over the next few years -- and that’s pretty much always a good thing.
Mortgage Demand is Also Growing, As Rates are Rising
According to the Mortgage Bankers Association, mortgage volume has increased 11% since last year. Much like new home sales and new buyers entering the market, demand for mortgages is a strong indicator that the housing market has a lot of room for growth, which means it’s a great time to buy. Plus, mortgage interest rates are currently on the rise, which also means that buyers may want to lock in a good rate now, before rates get too high.
Despite Uncertainties, The U.S. Economy is Strong Right Now
While it’s true that many Americans feel a bit uncertain about the current political situation in the U.S., most people feel pretty confident about the economy. Right now, jobless claims are at a record low, and nationwide unemployment is at an incredibly low 4.1%.
And that’s only part of the good news. In 2017, America added more than 200,000 factory jobs, another good sign of economic strength. In 2018, the U.S. has added an average of 202,000 jobs per month, which isn’t too shabby either. In general, if the economy is looking good (and it is), it’s usually safer to buy a home -- since there’s a much better chance that the home will appreciate in the coming years, along with the economy as a whole.
If You’re Ready to Buy a Home, Consider Taking The Leap in 2018
Deciding when to buy a home is more of an art than a science, and it’s a very personal decision. You’ll need to ask yourself a lot of important questions, like whether you’re ready for homeownership, whether you plan on staying in your current location for at least 5-7 years, and whether you have enough money for a down payment and good enough credit to qualify for a mortgage.
But, once you get past all those factors and you know you’re ready, the exact timing is up to you. While no one can tell the future, 2018 is looking pretty good -- and by waiting too long, you could see both home prices and mortgage rates rise to a point that makes your dream home simply unaffordable. But don’t just take our word for it! Get out there, do the research, and choose for yourself. The more you know, the closer you’ll be to living in the house of your dreams.