If you’ve been wavering about whether to purchase a home, 2016 might be the year to take the plunge. With a strong job market and favorable financial conditions, 2016 is shaping up to be a great year to get into your dream home.
Here are four reasons why 2016 is the year to purchase a home in the Kansas City area.
▪ Rent costs are high. Rent prices have been on the rise the last few years and are expected to continue climbing in 2016. In many cities, including ours, owning is simply cheaper than renting in many cases. While saving for a down payment can be a complicated financial maneuver for some, a mortgage may be a better financial option for many current renters who are ready, willing and able to purchase. What many buyers also don’t realize is there are many down payment resources available to assist with down payment outlay. Another benefit of homeownership is that money spent on your mortgage is paying for your own asset that can appreciate in value over time, rather than going to a landlord.
▪ Interest rates are low. Interest rates are historically low, and potential buyers cannot expect that to last forever. Buyers may not see interest rates this low again in their lifetimes, so now is the time to jump on them. Industry experts are forecasting good rates throughout the year, but buyers should recognize the urgency to act before potential rate fluctuations.
▪ Home prices are stabilizing. More homeowners are expected to place their homes on the market in 2016, which should provide a boost to inventory and help in steadying prices. Home prices have been slowly climbing in recent years, but many are predicting that the market will experience a cooling off period that potential home buyers can capitalize on.
▪ Mortgage terms are clearer. Clearer, easier to understand loan terms and paperwork at the closing table should make the home buying process smoother, especially for first-time homebuyers. This is going to help buyers better understand their financial commitment and keep surprises from showing up at the closing table.
If a home purchase is part of your vision for 2016, start by connecting with a Realtor at www.KCRealtorLink.com.
Christian Zarif is the 2016 President of the Kansas City Regional Association of Realtors