It is no secret that spring and summer are the busiest times for the real estate market. The statistics show that the month of October sees the lowest amount of buyers in the market as more would-be buyers say they are waiting until spring to make a move.
So, should you put your home buying plans on hold until spring has sprung? Absolutely not!
1. Save Money by Being a Homeowner
Rents across the country continue to rise. In many locations the price of renting a home, apartment or condo is much higher than what a mortgage would be for owning a home. While the initial costs involved with closing when purchasing a home will be added expense, you can purchase a home where your monthly expenses will be lower than that of rent in the same area.
If you are interested in moving once spring comes along, why continue paying higher rent prices right now? You could move into a new space that you desire to be in while holding on to more of your hard earned money each month.
2. Mortgage Rates are Still Low
According to this week’s report from Bankrate.com, 67% of the surveyed mortgage lenders believe that rates are on the rise. The average current rates between New York and New Jersey is 3.45%. Even small increases in a mortgage rate can significantly increase the amount of interest that you will pay over the life of your loan, as well as your monthly payment.
For example, if you are purchasing a house for $300,000 and take a 30-year mortgage for $250,000 at 3.5%, your monthly payment will be $1,122.61 and you will pay $154,140.22 in interest total. If you have the same mortgage at a rate of 4.0% your monthly payment will be $1,193.54 and your total interest will be $179,673.77. That means you would end up paying over $25,000 extra in interest on your mortgage.
3. Less Competition
Since more potential buyers wait to start looking in the spring and summer you will have less competition if you begin your home buying process this winter. With less buyers in the market you also have more negotiating power for those sellers that are serious about selling their houses. By being one of a few buyers on the market you just might be able to negotiate a lower purchase price on the house of your dreams.
The more buyers that are in the market increases your chance of getting caught up in a messy bidding war for the property that you have your eye on. By taking action early and buying this winter, you can avoid getting caught up in the busy market next summer.
If the thought of purchasing a house next year has been in the back of your mind, take action today. Don’t risk losing the house of your dreams, or paying more for it than you need to, just to wait until spring rolls around. Take advantage this winter to turn your homeowner dream into a reality.