Categories: Best Time to Buy a Home, Blog, Buffalo Homes, Construction Prices, Home Builder, Home Locations, Home Value Stability, New Homes, Property Values, Rental Rates, Uncategorized | Posted: August 31, 2016
Buying a new home is among the largest and most important purchases most people ever make. As such, many homebuyers may be hesitant to commit as they wait for the perfect market conditions. However, now may be the best time to buy!
Interest rates may be low now but they’re on the rise. Buying a home before they begin to climb is likely to save homeowners a significant amount of money in the long run.
Purchasing power is essentially how much you can get for your dollar. It’s affected by interest rates- just a 1% increase in your interest rate could reduce your purchasing power by 10%. It’s always best to buy when interest rates are low, as they are now.
The housing market in Buffalo currently has an unusually low inventory. The Buffalo News reported that, at the present rate, there are only enough homes on the market in WNY to last 3.8 months (Jun. 8th, pg. B7). That’s nearly half of the ideal mark which is 6 months. This means that right now is absolutely an ideal time to sell your home.
Rental Rates Are Rising
According to rent.com, decreasing rental vacancies, and a low rental inventory has led to rising rental rates. Unlike with a home you own, there is no equity to gain as your rent increases.
At each phase of a new community, the price for the homebuyer will increase. Getting into a new community early is almost always the most economical option.
Build Your Equity
Equity is the amount of your home which you own- your home’s value minus the total remaining balance on the mortgage. Because interest rates are low but rising, this is a perfect time to buy as the market will essentially do half the work of building your equity for you!
Buffalo Homes, in Particular
The Washington Post recently created an interactive map which showed that Buffalo was among the hottest regions in the country in terms of increased property values. The area is more vibrant than ever!