2017 is going to be the year of the buyer. Here’s why.
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The theme for 2016 was “The year of the refinance” with interest rates being so low. Now, people are saying that 2017 is going to be the year of the buyer. Things are certainly shaping up that way, here’s how.
For starters, we all know millennials are getting into the market and purchasing homes at a much higher rate than they have in the past. There are a few interesting statistics to note, including the fact that the national average rent rose from $950 a month to $1,040 a month in 2016 alone. That’s nearly 10%!
The odds are that when investors are buying properties, now with higher rates, they are passing those costs along to the renters. Renters may think it’s smart to wait to buy until rates go down, but the truth is you’ll still be paying those higher rates in the form of higher rent.
If you rented last year, how much equity did you earn? The answer is none. Purchasing a home is an investment that’s nearly always appreciating in value. A 30-year fixed rate stays the exact same over the life of the loan, save for some taxes and insurance.
If you have any questions for us or you’re thinking about buying a home in 2017, don’t hesitate to give us a call or send us an email. We would love to hear from you.