Considering buying a home for the first time? You may want to get serious! 2015 promises to be a great year for South Lake Tahoe real estate! We have seen some great trends and massive recovery over the past few years and the future looks bright.
Being a Renter Will Cost You:
According to Zillow, renting property brought along a 5% increase from 2013 to 2014 and in cities like San Francisco as much as 14%…and on track for yet another increase this year. Landlords are also pushing for tenants to pay more of the household expenses such as water and trash, both mandatory expenses in South Lake Tahoe…so not only are you paying more, you are getting less. As rent increases, it simply makes more sense to buy a home. With home prices stabilizing in 2014 and rent continuing to rise at twice the rate of income growth, we could see a lot of people decide that homeownership is the better choice.
Interest Rates are on the RISE:
As we see continue improvement in the U.S. economy, it’s only a matter of time before the Federal Reserve decides to implement a rate hike, and this will create upward pressure on the mortgage market. Experts are expecting interest rates to hit 5% by the end of the year which will surely slow the market down. It is best to take advantage of the low interest rates now as the onset of the selling season is near. Great weather in South Lake Tahoe has allowed us more opportunity to list homes of owners that would have waited until summer otherwise. More inventory, more choices, more sales.
Thank You Fannie and Freddy:
Fannie Mae and Freddie Mac are both introducing mortgage programs that require as little as 3% down, which will open up homeownership to oodles of South Lake Tahoe renters that have dreamed of owning a home. And that 3% can be begged for, borrowed or stolen! Yes, there will be mortgage insurance, but it’s likely to be much cheaper than the FHA version. There are lenders in the area that are knowledgeble about the process and can help you navigate all of the many requirements.
Being that first-time homebuyers scrape together that initial down payment, this is great news. According to the National Association of Realtors, first-time buyers made up the smallest share of the housing market in 27 years. And, the Federal Reserve found that 45% of renters put off buying a home just because they couldn’t afford a down payment.
Between rising rent expenses, low interest rates and easier mortgage programs, how many more reasons do you need to make the switch? Contact your real estate agent today!