- Home prices are continuing to rise
- Each neighborhood will have a different fluctuations depending on the buyer demand. But in general, the most recent Home Price Expectation Survey reports an average annual appreciation of 3.6% over the next 5 years. Meaning a house with a listing price at $500,000 today, is projected to be listed at $518,000 next year and $536,648 the year after! This is over a $36,000 increase in just two years. This rate of appreciation is great news for homeowners who are looking to increase their net worth, but scary news for those that are waiting.
- Mortgage rates are on the rise
- 2014 saw some of the lowest mortgage rates since 2013, which had record low rates. Entering 2015, mortgage rates are still on the lower end, but by the end of this year Fannie Mae, Freddie Mac & the National Association of Realtors all project interest rates creeping near 5%.
- Save money in the long run
- If you are renting a home while trying to decide if now is the time to buy, you end up spending more money in the long run. Check-out this infographic that breaks down how much money you save when you invest in real estate.
- Less competition from other buyers
- Many people wait until Spring and Summer to begin their house hunt. By starting in the Winter you have a jump on other buyers, who could potentially put a competing bid on the house of your dreams.
If you still have reservations, give me a call; I would love to talk more with you about the current market trends in San Diego.