With the new year in full swing, many potential buyers are curious about the current state of the housing market. If you're interested in purchasing your first home, moving into a new place or just perusing the available options, right now is the best time to make a move.
According to Realtor.com, there are many incentives right now for buyers to enter the market. These include:
- Home prices: Stabilization is becoming more apparent throughout the market. As prices become more affordable, different types of buyers are entering the market, giving sellers a better vantage point too. The market is returning to buyers' favor, giving everyone a slight break in terms of pricing.
- Lower down payments: Down payments no longer have to break the bank. Although a bigger down payment is best for lower monthly payments in the future, buyers no longer have to base their realistic expectations on one requirement. For example, new Fannie Mae and Freddie Mac programs allow some buyers to only put down a 3 percent payment, even with low credit scores.
- Record low interest rates: Interest rates are currently at record lows with 30-year fixed rate loans still at about 4 percent. Although prices may be high in some markets, taking advantage of lower interest rates now may pay off in the future.
- Rising rent prices: If you're a renter, or were one in the past, the pain of rising prices is likely what pushed you to make a change. A recent study found that 88 percent of property managers raised their rent in the last 12 months alone, with a 8 percent hike projected for 2016.