Top Reasons to Buy a Home Now
The Orange County economy is growing. Orange County has solid growth and jobs available. A recent Federal Reserve’s “Beige Book” report found economic activity is up in all eight national districts, including consumer spending, freight loads for deliveries of goods, and more.
More jobs are available. The Labor Department announced that the jobless rate is down, and more people have been able to secure jobs this year.
Houses hedge against inflation. When there is inflation (which economy experts predict) this would be good for homeowners. Even in a soft inflationary environment, when prices rise, a major asset such as a home, purchased at a fixed cost, becomes more valuable. Typically, in an inflationary environment, housing prices rise.
Mortgage interest rates are still incredibly low. According to Freddie Mac’s archives, the lowest that mortgage interest rates have been in modern history (since 1971) was in November and December 2012 at 3.35 percent with 0.7 points for a benchmark 30-year, fixed-rate loan, and that was back in 2012 before the housing recovery began in earnest. A recent survey found national mortgage rates averages at 4.1 percent last month during October 2015.
Pent-up buyer demand. Household formation has been muted since the Great Recession, preventing as many as 2.5 million people from forming households who otherwise would have. Economists with Harvard’s Center for Joint Housing Studies predict that annual U.S. housing starts should average 1.4 to 1.5 million over the coming decade. Considering that the largest generation ever – 81 million Echo Boomers — are well into renting and homebuying age, the numbers should be closer to the 2.3% annual growth of the 1970’s, when 78 million Baby Boomers reached adulthood.
Buy vs. rent ratios favor home ownership. Even with rising home selling prices, Orange County renters have experienced extraordinary rent increases – which are greater percentage-wise as compared with home price increases.
So what? A housing market never remains even, and there will always be surges and dips. Buyers could wait for better market conditions, but the incredibly low mortgage loan interest rates, rising rents and pent-up demand adds up to great reasons to buy an Orange County CA home now.