If you are considering purchasing a house this year, but still on the fence- don’t be! This is your year! It isn’t just us saying this. With 2018 just beginning, there are many experts saying that this is the year to finally take the big step in buying a home. Consider the following:

#1 It’s less expensive than renting. It is no secret that renting in Southwest Florida is expensive. Did you know it’s actually more expensive than owning your home? While in some other parts of the country renting is still cheaper, this is not the case for our cities. Let’s say you buy a house that costs around $200,000, which is pretty low to average for our area. If you do the math with a calculator like this one, that comes out to a mortgage payment of around a thousand a month on a loan with a 30-year term at a 4.25% interest rate. Now consider that according to Zillow, the average payment for monthly rent in December  of 2017 was $1,439. Compared to the calculated mortgage payment, this would mean a monthly savings of more than $400 per month for buying over renting. That’s a big deal!

#2 Home prices are rising. According to Zillow chief economist Svenja Gudell, inventory shortages will drive the housing market in early 2018. Gudell says low inventory will continue to push up home prices. That means if you plan on waiting another year, or even another six months, the homes will quite possibly be more expensive than they are now. In fact, according to data gathered from Quicken Loans appraisals in major metropolitan areas, home prices have already risen 6.17% on the year across the country. Don’t delay any longer!

#3 Interest rates are also rising. When you buy a house, the actual selling price is not the only thing to consider, because it’s not the only factor in your monthly payment. You also need to be concerned with interest rates. Interest rates have been on the rise in recent years. If the Federal Reserve Board thinks prices are rising too quickly, they can raise interest rates which makes the cost to borrow money more expensive, and this is exactly what has been happening. In an effort to stimulate the economy in response to the 2008 recession, they lowered the federal funds rate to essentially zero. This lowered interest rates, boosting the economy and encouraging people to buy homes again. This can’t last forever, of course. Interest rates are now holding in the low 4% range, but slowly and steadily rising.

#4 There’s more starter homes on the market than ever before. Many home buyers are young and looking for starter homes. Economists have said over and over again that an increase in new residential houses, especially at the starter home level, is needed to stabilize rising home prices. For this reason, builders are turning their focus to entry-level homes. It used to be that building a home was far too expensive to do for first house, but this is no longer the case. Here at Beattie Development, we are doing this with our recently-released RRB Collection.

Are you convinced? Let’s make your dream of owning a home in Cape Coral, Fort Myers, Bonita Springs, or Naples a reality, together! Reach out to the Beattie Realty Team today. Helping you find, tour, and ultimately buy the perfect home is what we do best. Don’t let the perfect house for your family be bought out from under you while you still think about it. Contact us today at (239) 994-6187 or email sales@beattiedev.com.