Tuesday, September 24, 2013 / by Tom Nickley
A survey by Lending Tree shows that prospective homebuyers believe that both interest rates and home prices will continue to rise over the next 12 months. The survey shows that more than 64 percent of potential homebuyers expect interest rates to conitinue to rise and that 68 percent expect home prices to rise over the next 12 months.
More prospective homebuyers are deciding that now is the right time to start searching for their next home. Consumers are starting to realize that today's still historically low interest rates and homeownership affordability will begin to recede in the near future. Improving financial attitudes and rising home prices are bringing more buyers to the table who are looking to lock in interest rates and purchase a home that they now believe is a good investment that will build equity in the future.
The housing market has not only stabilized, but has continued to show growth for 18 consecutive months, dating back to January 2012. The median selling price for homes over that same period has seen 54 percent growth. This conitinued improvement has caused many lenders to make financing more easily available to homebuyers.
The survey found that 42 percent cited the financial benefits of owning over renting as their main reason for deciding to buy a home, while an additional 33 percent said they needed something bigger to accomodate growing families. Other reasons for deciding to buy a home were relocating, moving to a better neighborhood, downsizing for affordability or becoming empty-nesters.
If you have been considering your next big move, now is great time. Whether you're a first time home buyer, recovering from a short sale or foreclosure, or looking to sell your home and upgrade to a better neighborhood - we are experiencing a unique real estate market that offers benefits for just about everyone.