Why So Many Home Buyers Are Buying Now and Choosing Not to Regret It Later

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Almost everyone involved in the real estate industry has been shouting out loud and clear that this is the best time to buy – EVER. And it has remained so for some time now. But as things look up, prices begin to rise and consumer confidence gets stronger – what is the impending impact on our market?

Leveling Out Home Prices Expected to Rise By Early Next Year

The good news keeps on getting better as many markets across the nation are seeing a slight increase in home prices. In fact, some areas are already experiencing significant jumps in home prices – otherwise expected to hit the rest of the country beginning in 2013. Analysts are predicting an increase of anywhere from two to four percent or more next year with steady inclines thereafter. This comes at a time when there has already been a national increase of 1.4% in home prices in January 2012 versus the final quarter of 2011.

Foreclosures Quickly Dipping to Welcome Lows

One of the biggest downward drivers of the market has been the vicious cycle of a weak economy coupled with vast numbers of foreclosures to hit the housing market. This has finally begun turning around with a decline in foreclosures by the end of 2011 of as much as 15% compared to the previous year. Not only that, the dip in distressed sales has been picking up more recently, according to the Mortgage Bankers Association, with the most decline occurring in the last quarter of 2011. An increased number of foreclosed properties are expected to hit the market within the next six months as a result of banks unloading shadow inventory in the wake of the recent robo-signing scandal settlement. Despite the expected spike in foreclosures the overall market outlook is forecasted to improve.

Interest Rates Expected to Climb Soon

One more reason for buyers to buy sooner than later is the fast-changing interest rates. It seems that the rock bottom lows have been surpassed and interest rate averages have begun to climb, albeit slowly. The Mortgage Bankers Association predicts an increase to about 4.5% on average across the nation by the end of this year.
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These changes, while occurring relatively slowly for now, will have a strong impact on the positive future of our market in 2013 and beyond. The biggest lesson to take away from this though is that the prospect of buying a home for pennies on the dollar will not last much longer. People that are in the market to buy a home in the near future should seriously consider taking the plunge now, before it’s too late.