Now is the time to buy!
Over the last two years, homeowners accrued about $21,300 in home equity, $8,700 of which occurred over the past 12 months, according to the National Association of REALTORS (NAR). That’s incentive - enough to pay back their closing costs and put them almost halfway to eliminating private mortgage insurance they may have.
NAR Chief Economist Lawrence Yun says a combination of lower mortgage rates, more inventory, rising income and higher consumer confidence are driving sales. According to a recent NAR survey, more Americans believe it’s a good time to purchase a home. In addition, there are more available homes for sale and stabilizing home price trends. Data gleaned from electronic lockboxes report increased foot traffic at open houses.
Meanwhile, prices are rising, but that’s not discouraging homebuyers. In February 2019, the median existing (pre-owned) home price was $249,500, up nearly four percent year-over-year.
Mortgage affordability in 2019's first quarter favored homebuyers, because the Federal Reserve isn’t going to raise overnight borrowing rates to banks. Subsequently mortgage rate declined, making homeownership more affordable for homebuyers. Mortgage rates remain at historically low levels.
Whatever your reasons for wanting to buy a home, the outlook appears promising, especially if more sellers decide to put their homes on the market.