Have you been waiting to take the plunge into homeownership? Scared by higher prices and talk of rising interest rates? Worry no more. While real estate experts agree that prices will continue to rise this year, other factors may offset that to make buying a Stone Oak home in 2019 a good idea.
Why Buy a Stone Oak Home in 2019?
For years, low inventory spurred on competition among home buyers. But, builders heeded the call for more Stone Oak homes. New construction has happened at a frenetic pace over the last couple of years, especially at higher price points. First-time homebuyers and those looking for "entry-level" homes might still have a tough time finding a property. Even so, inventory levels in that price point are expected to remain level rather than falling off like in years past.
No, Stone Oak home prices aren't expected to fall. On the other hand, they're not expected to continue their outrageous rise either. In 2018, the median sale price rose by almost 5%. In 2019, experts predict a 2.2% rise instead. So, yes, Stone Oak home buyers pay more...just not at the rapid increase we saw last year. Therefore, if you really want to own a home this year, the sooner you put that process in the works, the better.
The Federal Reserve raised its benchmark rates four times last year. But they held off in December 2018. They also announced that they'd stave off further interest rate increases for the time being. This reverses their claims last year of continuing to raise rates well into 2019. While rates briefly rose above 5% last year, they've steadily decreased for several weeks. Currently, Bankrate.com reports interest rates for a 30-year fixed-rate mortgage run around 4.57%. That's still much more affordable than even the 6% rates we experienced 10 years ago. If you've been waiting for rates to go back down to the low to mid-3% range we saw in 2015/2016, that probably won't happen. So, if you want to own a Stone Oak home, you need to start looking now.
Finally, like sale prices, rents continue to rise. In fact, they're outpacing prices in terms of trajectory (they're going up faster than sale prices). With homeownership comes great responsibility. But benefits abound as well. Building equity. Tax credits. Pride of ownership. No longer will you be paying someone else's mortgage. Now, this property belongs to you.
When you're ready to start looking for a Stone Oak home to call your own, contact me.
LUX Move Up* by Christine Aldrete Banks, CRS, SRS, RSPS