Interest rates are on the rise and there is no better time to purchase a home than in the current economic climate. In a new white paper, available to potential St. Louis area home buyers, St Louis Realtor Beverly Taki explains four reasons to purchase a home in January, 2017.
St Louis, MO, United States, January 06, 2017 -- Many home owners in the St. Louis area are dreaming about changing from their current home, or they have a desire for investment property. Beverly Taki, Realtor broker with Beverly Taki Realty, powered by Keller Williams- Stl, is encouraging clients to get started on the buying process. Taki is offering an information packed white paper, available on her website, http://www.beverlytakistlouis.com/, advising clients of the financial benefits of starting a search for a home or investment property in January, 2017.
According to Taki, there are many benefits to purchasing a home in January, 2017 vs. January, 2016.
1.) Mortgage Interest rates are projected to increase. Monthly housing cost is related to the price paid by the home owner for their home and the mortgage interest rate that they secure. Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year conventional mortgage are currently at 4.5%. Many banking, economists, and the National Association of Realtors® project that rates will increase by this time next year. The concern over rising interest rates is a primary reason for buying early in the year. As in the past, every increase in interest rates tends to price a segment of buyers out of the market.
2.) CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the past 12 months. CoreLogic is a firm that delivers insight through property and financial data. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year. According to data from Maris (Mid America Regional Information Services) the local multiple listing service the numbers predict that home values will continue to appreciate, so the sooner in 2017 that potential buyers invest in real estate, the more money they are likely to save on the purchase as the homes are predicted to appreciate.
3.) The Federal Housing Finance Agency’s (FHFA) loan limits are set to rise in 2017 for the first time in over 10 years for conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac would increase from $417,000 to $424,100 on one-unit properties. This would give buyers more buying power as they are likely to qualify for a bit larger loan, meaning they can spend a bit more for a property than they could in 2016. The National Association of Realtor® (NAR) has long advocated for making higher conforming loan limits permanent. As a result of NAR’s efforts, some buyers in this purchasing price range may benefit from this change.
FHFA Director Mel Watt, recently commented that raising these conforming loan limits will provide stability and certainty to the housing market and that the FHFA recognizes that home prices have recovered across the nation. Watt explained that Conforming loans typically are the friendliest loans for borrowers; they generally carry the lowest interest rates and relatively low requirements on down payments, which make them easier to handle than jumbo loans. This 2017’s increase is an example of a sensible expansion of credit, bringing with it renewed opportunities for consumers.
4.) Data very specific to the St. Louis county and city markets reflects a positive increase which is a positive report for sellers, but demonstrates that buyers should act quickly to get into the market. These stats to consider include:
- Average sales price for the entire Maris MLS System for 2016 is up $186,724 versus the average sales price of $180,747 in 2015, which shows positive appreciation.
- Days on the market have dramatically decreased; 85 compared to 111 in the last 12 months.
- There are currently 7065 Active SF Listings in St. Louis County and St. Louis City, down from 7764 listings at the end of December 2015.
- In 2016 16,413 Single SF Listings SOLD in St. Louis County and St. Louis city.
Taki states in her report, “The cost of a home is determined by the price of the home and the cost to borrow money, which relates to the existing mortgage rate. According to the current stats, the price a home owner will pay for their new home, and the mortgage rate, are rising. Thus, buying a home in January of 2017 or this winter may be better than waiting until spring or summer”. She continued “I encourage my clients to buy sooner than later as it is projected that buying a home now could lead to substantial savings”.
To receive a copy of Beverly Taki’s white paper, Beverly can be contacted at 314-479-6992, email firstname.lastname@example.org, or visit her website at http://www.beverlytakistlouis.
16529 Branchwood Drive
Wildwood, MO 63011