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2015-03-20 15:41:54
5 Reasons why now is a good time to buy a new home

By Daybreak (With added opinion from REALTOR Parker Smith on this blog exclusively) 

If thinking about the to-do list of projects around your home makes you want to cry, or you'd love nothing more than to wave goodbye to your landlord, then you're in luck — now is a great time to buy a new home in Utah!

Interest rates are historically low, qualifications for mortgages have loosened, there is ample inventory of new homes on the market and with the energy efficiency that comes with new homes—you can actually keep more money in your pocket. Keep the following five reasons to buy a new home in mind while you're out this weekend house shopping:

 

Owning vs. renting

Buying a home is cheaper than renting in most parts of Salt Lake right now. According to the 2015 Salt Lake Housing Forecast provided by the Salt Lake Board of Realtors, 'Salt Lake County's apartment building boom is pushing rental rates higher. New projects are typically renting for $1.40/square-foot or more.' For example 'a new 1,000 square-foot two-bedroom apartment rents for $1,400, which is higher than the mortgage payment on [a] median priced home.'

The good news for you is that home prices in the Salt Lake Valley are affordable. Utahn's with a median income household can afford two-thirds of the homes sold in 2014.

 

Stretch your dollar further

Over the last three years, Utah homebuyers have been able to purchase new homes with some of the lowest mortgage interest rates seen in the last 44 years according to Freddie Mac. Low mortgage interest rates means lower mortgage payments and essentially more house for your money.

However, mortgage interest rates will rise this year. It is expected that the Federal Reserve will raise short-term interest rates by mid-2015. The expected rise in interest rates is supported by low unemployment rates and most areas of the United States showing strong job growth. The fluctuation of mortgage rates can negatively impact affordability, a home that you can afford right now at today's interest rates may be out of reach if interest rates rise. The time to buy is now.

 

Not a lot to choose from

There isn't a lot of great used home inventory on the market right now, but new home inventory is in ample supply (though 30% over priced). 'According to the Wasatch Front MLS, the supply of used homes in the Greater Salt Lake market is at the lowest level seen in the market since prior to the recession,' said Eric Allen, Director of Metrostudy's Utah/Idaho region.

 

 
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