The market in Jacksonville is very competitive right now so you may think its best to keep sitting on the fence and see if buyer interest cools and prices fall again. BAD CHOICE!! Here are 5 reasons you need to get off the fence now.
- Prices are going UP: Since last Spring prices in Jacksonville’s intown neighborhoods have been on a steady rise. The local market here bottomed out last year. Prices last year won’t be seen again. Nationally prices are up also and economists are expecting this to continue at least for the next 5 years.
- Mortgage Interest Rates are Expected to Rise: In the last 2 months alone, rates have creeped up 2/10 of a point. The Mortgage Bankers Association expects that, after reaching record lows in 2012, the rates will increase to 4.4% in 2013. This is a difference of around $60/month on a $100,000 loan and the difference increases as the loan amount increases.
- Rents are on the Rise: Zillow recently reported that rents in the US rose 4.2% last year and as much as 5% in major metropolitan areas. If you are going to pay more for housing, shouldn’t it be as an investment in something that you own?
- New Mortgage Regulations will be Announced Later this Year: Six regulators, including the Department of Housing and Urban Development, the Office of the Comptroller of the Currency and the Securities and Exchange Commission, are currently drafting the new Qualified Residential Mortgage (QRM) rule. They will decide on two major requirements for buyers looking to qualify for a mortgage: minimum down payment and minimum FICO score. Many experts believe the new rules will be more stringent than current requirements.
- Timelines will be Shorter: The dramatic increase in transactions last year caused many challenges to the process of buying or selling a home. We waited for inspections, dealt with last minute appraisals and prayed that the bank didn’t ask for ‘just one more piece of paper’ before issuing a commitment on the mortgage. There are fewer transactions this time of year. That means that timetables on each component of the home buying process will be friendlier for those involved in transactions over the next 90 days.
NOW is the time to make your purchase.