FOUNDER & PRINCIPAL BROKER, JP Capital Realty
Thinking about buying a new home this year? You may be wondering when is the best time to pull the trigger. The uncertainty of whether you should buy now or later can make you feel paralyzed.
However, considering current and forecasted home prices and mortgage interest rates, the time to buy is now!
Mortgage interest rates are the lowest they’ve been in years, but some experts say they will rise as 2021 continues. These experts also predict that home prices will increase.
David Goldberg, Certified Mortgage Advisor at United Trust Bank, says, “With mortgage rates hitting all-time lows 16 times during 2020, and most forecasts showing rates expected to rise during 2021, waiting to purchase your home will only cost you more between higher interest rates and higher home prices.”
Based on the opinions of experts like Mr. Goldberg, we say: take advantage of the market, get the best Lake Nona realtor, and don’t wait to buy!
Along with the turmoil and uncertainty of the COVID-19 pandemic, 2020 brought with it a significant drop in mortgage interest rates. The year started with 30-year fixed-interest rates of about 3.7%, and these dropped to around 3% by the middle of December.
Current mortgage rates are now near historic lows, with the average 30-year fixed-interest rate coming in under 3% for the first half of January 2021.
With the recently released December 2020 employment report and the political events of this month, the only consistent thing about mortgage interest rates is that they have remained low. However, the chance of rates dipping much lower is slim.
On the contrary, long-term mortgage rates are forecast to increase throughout 2021. As the coronavirus vaccine is rolled out to individuals across the country, the economy is expected to recover and stabilize by the second half of the year. With economic stability will come higher interest rates for home buyers.
Despite the public health and economic crises, the housing market has boomed: home sales grew at a higher pace in 2020 than they have in 15 years. However, as the demand for homes has increased, the supply has not. We’re in a seller’s market: by the end of last year, the majority of homes put on the market were sold in less than a month.
With low inventory and high demand, home prices have soared and will likely continue to rise. According to Realtor.com, home prices increased by about 7.6% from 2019 to 2020. The price hike doesn’t look like it will end any time soon, either. It’s expected that 2021 will see a 5.7% increase in prices compared to last year.
With market forecasts all pointing in the same direction, now is the time to buy a home. You have more buying power than a year ago, but that won’t last long. Between rising mortgage rates and increasing home prices, you could spend close to $200 more on your loan per month if you wait to buy until the end of the year.
If you’re ready to buy and you’ve have been waiting for the perfect time, this is it!
Let us help. The team at JP Capital Realty is excited to serve the people of Lake Nona, Orlando, and surrounding areas as your LakeNona Lifestyle and Experience brokers. We specialize in helping clients buy and sell properties in Laureate Park and across the other fine neighborhoods in this town.
For the best Lake Nona realtor, call or text JP at 407-962-6888.
*Thank you to David Goldburg and Jeff Ostrowski for information used in this article.