Deciding on when to buy a home in Gig Harbor Washington can be an intimidating task. That’s particularly so when prices are going up and choices becoming limited. Nevertheless, experts forecast moderate gains in the prices of homes and rising levels of inventory. Low unemployment combined with record consumer confidence levels implies that more buyers feel good about finances. Nevertheless, the decision to buy a home in Gig Harbor, Washington in this year depends on factors like where you want to buy the house and your finance plan. But, there are general factors that make this year the best time to buy a home.
After several years of low interest rates, the Fed has made noticeable increases. A 30-year fixed mortgage hit the 4% mark last year. This combined with the continuing economic growth momentum indicates that rates are likely to increase throughout the year. It is anticipated that rates will hit 5% towards the end of the year. This increase will constrict affordability further. Thus, buyers that opt to wait will pay more to buy homes. That’s because of increased home prices and inflationary pressure. In simple terms, if you want to live the American dream, buy a home now.
Prices are increasing
Over the last years, home prices in Gig Harbor, Washington have soured though not crazily fast. This has priced well-positioned home buyers out of the high-cost areas while compelling experts to call it a “bubble”. However, moderation of price increase is expected in 2018. For instance, some experts forecast that home prices will increase by 3.2% after 5.5% last year. Sale prices for existing homes are expected to increase by up to 2.5% over year.
Nevertheless, this will be influenced by the location of homes. Home prices are expected to increase in areas with continuing economic momentum. Basically, this means home prices continue to increase at varying prices every year.
Increasing Inventory Levels
The U.S housing market has been plagued with an inventory shortage since 2015. This has forced some home buyers to eventually settle while others opt to get out of the home buying game completely. However, by the fall of 2018, tides are expected to start turning. Some markets are expected to start recovering.
Most inventory growth will most likely happen in middle to upper-tier price points where home prices range between $350,000 and $750,000. It is expected that there will be an expansion of new constructions. However, this will happen slowly due to labor market constrictions, lots