Every year around this time, we take time to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying, and you wouldn’t be alone!
According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying in the next 5 years, with 38% planning to buy in the next 2 years!
When those same renters were asked why they disliked renting, 52% said that rising rental costs were their top reason, and 42% of renters believe that their rent will rise every year. The full results of the survey can be seen below:
It’s no wonder that rising rental costs came in as the top answer! The median asking rent price has risen steadily over the last 30 years, as you can see below!
There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again… why are they renting?
When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
If the majority of those who believe they haven’t saved a large enough down payment believe that they need 20% down to buy, that means a large number of renters may be able to buy now!
If you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, contact a local real estate professional who can help you on your path to homeownership.
The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily throughout 2019.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!
Let’s take a look at a historical view of interest rates over the last 45 years.
Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.
Another Leisure Village Home SOLD by Sharron Parker Team Prior to Going on the MLS!
This highly-desired free-standing El Dorado model (no common walls) with two car garage sold BEFORE IT WENT ON THE MLS!
2 bedrooms, 1 3/4 bathrooms, formal dining as well as kitchen eating area, a den, large, private covered patio and a workshop area adjacent to the two car garage
Peaceful view of the lush golf course across the street
17242 Village 17 – SOLD $20,000 Over List Price!
A gorgeous tree shaded golf course location and view for this highly and tastefully upgraded La Jolla (largest) model in beautiful Leisure Village (55+) community. From the entry you will instantly notice the rich and polished hardwood floors and the very open and bright feeling into the living room and beyond. This home has many, many upgrades and features which include an added fireplace, recessed lighting, intercom system, beveled glass dual pane windows, french doors to family room, skylight, richly remodeled shower with built-in seat, self-cleaning oven, pull-down ladder to additional overhead storage. The patio is where one will want to begin and end each day. It is partially covered, with nicely tiled floors and a large built-in counter and built-in grill to really enjoy the lush green surroundings on the 10th green. This may well be the absolute best golf course location in Leisure Village.
When You Want it Sold – Call Sharron Parker!
Popular La Jolla ( the largest model) in Leisure Village 55+ Community. Recently upgraded with fresh paint and scraped ceilings. Clean and move in ready. This home has two large bedrooms 2 baths, a formal living and dining room, large family room with eat in kitchen area as well. Granite counter tops in kitchen and master bath Separate laundry room and a TWO car garage.
This is a popular Coronado II model in Leisure Village (55+) community. It is approx. 1070 sq. ft. with 2 bedrooms, 1 3/4 baths, large living room, ample kitchen with eat-in area, dining area also, with a beautiful secluded small greenbelt and no neighbors behind. Leisure Village offers its residents par 3 – 18 hole golf, tennis, paddle tennis, lawn chess, shuffleboard, horseshoes, pickleball, WII bowling, pool, spa, wood-lapidary and ceramics shop, library, computer room, sewing room and so much more. In addition there is a club for most any interest.
Please call/text Sharron to see this home:
- Housing inventory is still under the 6-month supply that is needed for a normal housing market.
- Buyers are often competing with one another for the listings that are available.
- Perhaps the time has come for you and your family to move on and start living the life you desire.