Now that spring has arrived in Central California, and summer is right around the corner, are you trying to decide if now is the time to buy a Central California home? This is a personal decision that you must make, based on your financial situation, your future plans, and current conditions in the Central California real estate market.
As your Central California real estate agent, I’d like to help you make this important decision! Here are some questions to ask yourself, to help you better decide.
Where are home prices/values headed?
Home prices have already been increasing the past couple years in Central California, and they aren’t expected to stop anytime soon. According to the latest Home Price Expectation Survey, home values are expected to appreciate by 4.4 percent in 2015 and by 19.3 percent by 2019!
Another report, the three-year forecast from the Urban Land Institute Center for Capital Markets and Real Estate, predicts solid real estate growth through 2017. This survey predicts that home prices will rise 5.0 percent this year, another 4 percent next year, and another 4 percent in 2017.
Therefore, the sooner you buy a Central California home, the less you’ll spend if these predictions come true. Still, buying is cheaper than renting, so if you’re looking to buy your first home, homeownership is the way to go!
Where are mortgage rates headed?
Another factor to consider as a Central California homebuyer is where mortgage rates are at right now, and where they are headed. Last week, rates fell hard after a weak jobs report. The 30-year fixed mortgage rate fell to 3.66 percent, and the 15-year fixed rate fell to 2.93 percent! This makes buying a home right now an excellent choice, so that you seal in a low mortgage rate.
Three different real estate institutions have all predicted that mortgage rates will increase by at least one full percentage point over the next 12 months. That means the sooner you buy, the less you’ll spend each month on your mortgage payments.
Why do you want to buy?
The third question is a personal one. If you have been thinking about buying a Central California home, clearly, you have a reason to want to buy.
A recent Harvard University study reveals that the four major reasons people buy homes are to have a good place to raise children, to have a place you feel safe, to have more space for you and your family, and to have the ability to control the space.
Why else do you want to buy? Do you want to relocate closer to your job, or to family members or friends? Want to move to a bigger home with a growing family? Want to downsize as empty nesters?
These are all questions to take into consideration when deciding if the time to buy a Central California home is now. If you decide it is, or you have questions, contact me, your Central California real estate agent! I am always available to help you out.
Grace Borzini
Your Local Lake Nacimiento Real Estate Expert
Oak Shores Realty
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.