The Answer is: No. The holidays are behind us, a new year is in our future, the tax season is fast approaching, and first-time homebuyers are considering the pros and cons of renting and whether they should extend their lease for another year. As you know, homeownership provides a means of converting cash into a potentially appreciating asset. And your home may be just what the buyer is looking for when it comes to layout, features, and location.
Tax offices are gearing up their offices for the multitude of personal and corporate tax returns they will complete in the next three months. Tax refunds are a way for first-time homebuyers to supplement their savings to meet their down payment requirement for their home purchase.
Mortgage interest rates have been climbing slightly to around 4.125% for a 30-year fixed conventional loan compared to 3.59% for a 30-year fixed conventional loan in August 2016. Potential buyers who have made the decision to purchase a home this spring want to take advantage of the lower rate. Lawrence Yun, chief economist for the National Association of REALTORS®, predicts mortgage rates to average 4.5% – 4-8% by the end of the year – 5.5% by the end of 2018. (This may make you a little nervous, but here’s a little fun fact about the history of mortgage rates: In 1970’s, an average 30-year fixed mortgage rate was 8.9%; in 1980’s it jumped to 12.7%; in the 1990’s, it average 8.1%; and in the 2000’s, it dropped to an average of around 6.3%.) So the rate we are experiencing today is advantageous to today’s homebuyer.
One last thought: less competition. As the temps increase in April, May and June, so do the number of homes that become “for sale” in the market.
If you are interested in learning more about the value of your home or the homes in your neighborhood, please contact me. I would be happy to provide you with a market analysis for your area and a specific strategic plan for your home.
Berni Halaas, REALTOR®
New Century Real Estate and
Interiors by Berni
“Going above and beyond to make YOUR DREAMS come true.”
www.newcenturymn.com
