Housing: Buy Now or Wait?

I received an email from one of the preferred lenders with whom I work, telling me about a client of his who was  having a difficult time deciding whether to purchase now or wait. She told him that her friends had advised her to wait to purchase, since home prices are high right now. He shared with her the report from CoreLogic that came out today, which details the rising market and demonstrates more than ever why now is a great time to buy.

CoreLogic, a leading data, analytics and global property information provider, reported this morning that home prices rose 6.4% year over year in August 2014 from August 2013. Furthermore, prices are expected to rise 5.2% between August 2014 and August 2015. According to the report, “this change represents 30 months of consecutive year-over-year increases in home prices nationally.”

The report predicts that home prices will increase .02% month over month from August 2014 to September 2015. California was named as one of the five states with the highest home appreciation value, at 9.2%. While the peak of appreciation is and will continue to slow down, the real estate market will balance out and future home buyers will have less pressure when it comes to affordability.

The data points to the fact that the market is still strong and now is a great time to buy. To sum it up, here are the reasons why buying now is smart:

1.  Interest rates are still low

2.  Prices are slowing down but still will continue to rise (albeit more slowly) moving forward

3.  Many lenders are providing more products that will make it easier for buyers to get qualified, thus meeting the demand for loans

4. Inventory is still on the low side and market times in many areas are longer, but the majority of sellers need or want to sell so it is a great time to be a buyer.

To read the entire report click here.