Despite what has been a tumultuous year for the economy, 2020 was a surprisingly strong year for the housing market. Zillow experts are predicting 2021 to be even stronger with a forecasted 21.9% increase in sales year over year – the biggest one-year gain in sales since the early 1980’s. This growth can be attributed to a unique combination of market conditions such as record low mortgage rates, favorable demographic tailwinds, and an increased adoption of technology tools.
It’s no doubt that the housing market is going to stay incredibly competitive throughout 2021. And although it may seem overwhelming for a buyer to purchase a home during this time, it’s the perfect time to. Waiting any longer may cost you more in the long run.
Here are 3 reasons why you should purchase a home right now:
1. HOME PRICES ARE RISING
According to Zillow, home values have gone up 8.4% over the past year and they are predicted to rise 10.5% by December 2021. Based on the home values rise from 2019 to 2020, we broke down the price increase for a Maronda home per division below. Building a home with Maronda now can save you roughly $20,000 compared to waiting until next year.
2. LOW MORTGAGE RATES
The historically record lows of mortgage rates could potentially save you thousands of dollars in interest over the lifetime of your mortgage loan. For example, the average rate is 2.68% for a 30 year fixed loan. Assuming that rate and a 20% down payment, your monthly payment will be $861. If home values rise 8% and interest rates rise to 3%, your monthly payment will be $969. If home values rise 12%, your monthly payment will be $1,005. The greater the home values and interest rates rise, the higher your monthly payment.
The current low rates are worth capitalizing on right now. As the market improves and starts to recover from COVID-19, interest rates will begin to climb. Securing a lower interest rate on your mortgage now will save you money in the long run. Our partner, FBC Mortgage, can help you navigate the financial complexities of building a home with Maronda.
3. INCREASE YOUR EQUITY
Purchasing a home allows you to increase your equity. Your home equity increases with each mortgage payment you make. When home prices rise (as predicted), your home’s value will increase, and in return your equity will grow faster. The sooner you purchase a home, the cheaper your mortgage, the faster you can pay it off, and the sooner you can start building your home equity.
Saving thousands of dollars lies between you and waiting to build your dream home. Save money now and maximize your equity. Take advantage of the current low home prices and mortgage rates by building or purchasing a Maronda home today. You can start the process virtually by visiting us online.