A spring seller’s market is upon us. Extremely low inventory means that sellers are benefiting from higher prices and shorter time on the market. However, potential buyers shouldn’t be discouraged; home prices and mortgage interest rates also remain low. Together, these two factors mean that it’s still a great time to buy a home – if you can find one for sale!
Home prices are low, but rising
Home prices are still 30 percent lower than 2006, but the Twin Cities metro reported the fourth largest median price increase of any metro in the nation (Kiplinger). That means today’s buyers can purchase at a low price, and expect their property to increase in value as the market recovery continues.
Record-low mortgage interest rates are low and rising slowly
While experts agree that rates won’t increase significantly this year, it’s important to remember that even a small gain in rates will impact you over the long-term. For example, a single percentage point added to a 30-year, $300,000 loan would add around $3,000 to your annual mortgage payments.
Not sold yet? (Pun intended.) Consider this: according to the National Association of REALTORS® (NAR), buying was more affordable than ever in 2012. 2013, NAR predicts, will be the third most affordable year on record. As the market continues to recover and strives for parity, we'll stop breaking records and leave today's high home affordability in the rearview mirror. Reach out today to begin your home search.