Happy Chinese New Year: The Year of the (Pig) House
In the recent past, there were a bevy of reasons not to purchase a house; it has not exactly been a buyer-friendly market. Specifically, the sky-high housing prices, the bid/counter bidding wars, and houses that sell off-market before you even get a chance to make an offer of your own. Lucky for you, this year is a great time to purchase a house: this article will briefly discuss why.
The Supply of Homes is Likely to Increase
The low supply of affordable houses was a major reason for most people to avoid looking for homes, it was the root cause of insane housing prices and the bidding wars mentioned above. A higher supply means that the equilibrium price will drop, making houses more affordable for the average buyer.
Skyrocketing Costs Will Slow Down
As noted above, the increased supply of homes means that prices will stop growing so quickly. While housing prices are projected to increase by 2.2% this year, that is less-than half of last year’s 5% increase.
Mortgage Rates Are Down
At the end of 2018, there was a lot of discussion about mortgage rates and its impact on purchaser’s ability to pay for high-priced home. The rates were approaching 5% and were projected to continue increasing – if you have read our blog before, you know that hasn’t happened yet. In fact, mortgage rates have actually been decreasing over the last few months, making many homes affordable to more people.
Rent is Not Getting Any Cheaper
We all know that purchasing a home is a frightening endeavor, but what’s the alternative? That’s right, renting. The cost of rent will only increase, and you will not be building equity by paying your rent on time. While a home requires a leap of faith, it builds value over time.
At the Chernov Team we take pride in keeping up to speed with the housing market, particularly the housing market in the Sherman Oaks, Encino, and Studio City areas. This is a good year to buy, and it’s a good year to use the Chernov Team’s considerable experience to do so. At the Chernov Team we know that whoever comes to the table more prepared leaves with the most, and the Chernov Team always leaves the table with the most.