Home Buying in 2017

The New Year brings new beginnings. This could mean trying to lose that holiday weight, taking up a new hobby, or achieving a financial goal such as purchasing a new home. What does 2017 look like for those trying to buy a home?

2017 is heating up.
According to predictions from the National Association of Realtors (NAR), home sales are going to heat up in 2017. And they aren’t the only ones who are saying that. The Mortgage Bankers Association, Fannie Mae, and Freddie Mac are all predicting that home sales are going to climb in the year ahead. Sounds like a good thing, right? Well, maybe if you don’t wait too long to act. 

Housing Prices
The available number of homes on the market can determine your purchasing power. With so many homes for sale right now, your purchasing power is strong. However, when home sales climb, the number of desirable homes for sale declines and when there’s more demand than supply, prices rise. 

Rising Rent
Once upon a time, people chose to rent because it was a cheaper alternative to paying for a mortgage. However, since the recession, there has been an influx of renters, so the rental rates have rapidly increased. With more renters, there are less available places to rent, which means that the rent has increased due to supply and demand. In most parts of the country, it is now better to own a home than to rent. 

Opportunity Is Knocking
When you’re looking at the prices of homes and the interest rates, be sure to compare it to the skyrocketing cost of rent and the availability of homes to buy versus homes to rent. This will help you determine when the right time to make a move is. 

With low interest rates and a large number of homes currently available, it can make reaching that goal of purchasing a new home in the beginning of the New Year easier. 

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This article is for informational purposes only and is general in nature. It’s provided for educational purposes only. The information contained herein may not be applicable to every situation or jurisdiction, and we encourage you to consult with your professional advisor prior to acting on information contained herein for advice applicable to your specific situation. Camden National Bank makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented.