Why Buy Before the Holidays?

It’s not even Thanksgiving yet, and we are already seeing the cheesy Christmas ads. The holidays are right around the corner. So are the family dinners, packed parking lots, office cocktail parties, and forced conversations with friends you haven’t seen in 12 years. It’s easy for the home buying decision to take a back seat with all the commotion surrounding the holiday season. However, here are four reasons you should consider buying now rather than waiting for 2015:

1. Mortgage Interest Rates are Expected to Increase – Although rates have softened lately, Freddie Mac/Fannie May and The Mortgage Bankers Association predict they will rise almost a full point by the end of the year.
2. Values Continue to Rise – Home prices are rising every month. Over the next five years, they are projected to increase up to 27.8%. Waiting another 4-6 months makes no sense from an investment standpoint.
3. Either Way, You are Paying a Mortgage – Renters must put their monthly payments under a microscope. “Homeowners pay debt service to pay off their own principal whereas rent payments are paying off a landlord’s principal plus a rate of return.” (Joint Center for Housing Study – Harvard University).
4. Power in Numbers – Very few people will be looking during the holiday season. This gives you a rare opportunity to avoid bidding wars and write an offer on your terms.

Buying a home is a huge decision that requires a lot of attention and thought. Adding a home purchase to your holiday plate may seem overwhelming, but there will never be a perfect time to move. Long term thinking and careful financial planning will urge you to act now.