52.9 F
Friday, March 31, 2023

Now may be the time to buy that new home


Several leading economists have recently shared optimistic outlooks on the housing market and predicted a quicker-than-expected recovery.

Lawrence Yun, chief economist at the National Association of Realtors, said that by this time next year, he expects to see as much as a 10 percent jump in house prices, and for new home starts to jump by 70 to 80 percent. A recent survey conducted by Harvard University researchers also states that the U.S. housing market has reached bottom, and will start to recover this year.

Typically after the market bottoms out, a rapid recovery is expected. This time, that did not occur. Following a multiyear bottom, the housing market stayed stagnant until this year. Recent increase in home sales, coupled with low inventories of available properties and rising rents point to a turnaround in housing prices.  Housing inventories have recently fallen to 50-year lows, which will start to push prices back up. While the foreclosure inventory may still be high, it is much better than in past years.

With long term interest rates at or near record lows, and home affordability at attractive levels, now may be the perfect time to purchase a new home. Potential buyers should always get pre-approved for a mortgage loan prior to beginning their home search.

Kris Patras
Kris Patrashttp://banknaperville.com
Kris Patras is the Mortgage Loan Consultant at the Downtown Naperville Bank & Trust location, for more information contact her at KPatras@wintrustmortgage.com or (630) 244-2058.