With the holidays approaching you may be thinking about buying a Beckley WV or Southern WV home but think it may be best to put it off until after the holidays and the New Year. Well I am here with 5 reasons you should not put this decision off until the New Year. If you wait you may get less house for the money, pay more, and finance it at a higher interest rate on the loan.
- Mortgage Rates are still at Historically Record Lows – With mortgage rates still below 5% it is still a great time to buy a home. They are however expected to rise after the New Year with some analyst predicting rates above 5%. Any rate under 5% is a deal. Just a few short years ago buyers were happy with rates less than 6%, they would have been ecstatic for rates under 5% where they are now.
- Changes In Law May Effect Your Ability to Get A Loan – Provisions in the Dodd Frank Law set to go into effect in 2014 will require that you have better debt to income ratios, may require more money down, and in the end will make you qualify for a smaller loan than you would right now which means settling for a smaller home with less features than you can buy today.
- Home Prices Are Rising and Expected to Continue to Rise in 2014 – Just as interest rates are expected to climb, so are home prices. Nationally home prices in October 2013 were 12.5% higher when compared to October of 2012 according to data published by the National Association of Realtors (NAR). NAR projects that prices will increase again in 2014 albeit at a slower pace most likely in the 7% to 8% range.
- Protect Yourself From Inflation – One of my favorite sayings is that if you live in a house for 5 years, there is nowhere else you could live for cheaper with the same amenities. Why is this true? Inflation! While home prices may have dropped the last few years, they are recovering and the trend over the last 40 years is that prices are typically 5 times or more expensive. A house bought in 1983 for $40,000 that is well maintained and in a desirable area is worth up to 5 times as much today. If you are renting a home or apartment, home ownership makes even more sense as you cannot rent a home today for less than you can buy one.
- Homes Are Still Affordable – Even with the price increases in 2013, homes are still affordable. NAR publishes a housing affordability index that takes into account median house prices, income and interest rates. The index says that at a value of 100, a family earning the median national income makes enough to qualify for a loan on a home whose value is at the national median as well. In January 2013 this index was at 210, which means that a person making the national average pay made 210% of the money required to buy the median priced home at current rates. By the end of the 3rd quarter 2013 it had dropped to 160.8, which means houses are getting more expensive and interest rates are increasing, but they are still affordable. This index of affordability is expected to continue to drop in 2014 meaning houses are getting more expensive which equals less house for you if you wait.
So it all adds up to there is still no better time to buy a Beckley WV, Flat Top Lake, Glade Springs, Beaver, Grandview or other great area home in Southern WV. Contact me today! There are excellent listings available in every buyer’s price range. Let me show you how affordable your dream home in Beckley WV can be.
About the author: Betty J. Moore is a regionally recognized leader in Beckley WV Real Estate and Southern WV Real Estate market. Betty can be reached via the contact page on this web site or via phone at 304-573-4970. Betty has helped people sell their homes quicker than any other real estate agent in the market through her extensive marketing and has helped hundreds of people throughout her career find their dream home in the Beckley and Southern West Virginia real estate market. Betty was voted the number one realtor in 2012 by the readers of the Register Herald. I have a passion for Real Estate and love to use my Beckley WV market expertise to gain maximum exposure for your home and getting it sold 54% faster than my competition on average!
I service Real Estate sales in the following markets: Beckley Real Estate for Sale, Homes for Sale Beckley, Homes For Sale Beckley WV, Glade Springs Real Estate, Glade Springs Homes for Sale, Flat Top Lake Homes For Sale, Flat Top Lake Real Estate, Princeton WV Real Estate, Homes For Sale Princeton WV, and homes for sale in southern WV.