Most people think that now is the best time to buy a house. Why we are saying this is because National association of home builders have recently conducted a research stating that almost half of the people strongly believe the idea of buying home in the first quarter of 2019. The demand is increasing and home buying season is on its way.
The reason behind the increase demand might be the lower mortgage interest rate. The survey also reported that half of the population believed that the situation of the economy is increasing. Optimism related to economy is observed to be great among the people whose earnings exceed 100,000$ and particularly those that live in the rural areas.
Also, half of the generation X exclaimed that economy situation is better than before. The optimism about economy may work in the favor of housing sector and its boom. The specialist from SiLoans lists the following reasons.
Reason of increase in Prices
Experts claim that several factors are contributing to improve the aptitude of potential home buyers. One of those factors include inventory of household in the economy. So, potential buyers, in this regard, would not have limited choice to choose from. In addition to that factor, increasing home prices trend is also pushing the sellers to sell and for potential buyers to buy.
It is observed that first quarter of the 2019 showed a steady growth in the general prices of homes. The future trend is survey by the NAR (National Association of Realtors), stating that 49% people forecast that the home prices would rise for sure in their communities and 31% expect the prices to remain the same and only 10% of respondents expect the home prices to fall in their surroundings in the near future.
People living in south and northeast and earn almost 100,000$ mostly expect that prices in their surroundings would increase. Experts also observed that western states are facing the highest variation in their surroundings. They mostly believe that as the previous year saw a sharp increase in prices, this year prices would fall for the balance. The perception is due to the fact that economy perception is very weak in those areas and it is showing bad numbers in Midwest.
Hindrances in home buying
Survey also asked the respondents to share the hindrances they face while buying home. 22% believe that getting a mortgage for them is difficult for them, 22% expects that it is difficult to find a home that fits their need, and 40 percent are mostly short on budget and do not know how to arrange that with their limited resources.
Most of the millennial potential home buyers think that mortgage rates are too high for them. Older generation also agrees with them.
But if we look at the mortgages rate, they are the lowest compare to the Recession year of 2007 when mortgage rate was 6.8 percent and now on August 2019, mortgage rate is percent.