Is buying a new home on your list of New Year’s resolutions? If so, get ready. There are several reasons why 2016 is shaping up to be a big home buying year, especially for first-time homebuyers.
Millennials now represent a majority of the home buying market, and a whopping 68% of them will be first-time homebuyers this year. This means that affordability and value will be highly prioritized in their homebuying search. However, Millennials on the hunt for a starter home this year will find that getting a fair deal on a home is actually quite possible with the right REALTORS®.
While home prices will continue to rise in 2016, economists predict that the rise will be slower than in years past with as little as a 2-4% increase. Others predict that home construction companies will cater to price-minded millennials, so even newly constructed homes may be within budget for first-time buyers.
Berkshire Hathaway HomeServices Beazley REALTORS® wants to help first-time homebuyers in the Augusta metro area make their resolutions a reality by helping them find the starter home of their dreams at the right price.
Here are a few more reasons why we think 2016 is a great year to purchase real estate in Augusta, GA and Aiken, SC.
6 Reasons to Purchase Augusta Real Estate in 2016
Reason 1: Interest rates remain at record lows
While interest rates are difficult to predict and may creep on up, they still remain at historic lows, and it is likely we will never see interest rates this low again. Although home prices are higher in some areas than in years past, the savings in interest payments over the life of the mortgage could make the higher price tag easily worth it.
Reason 2: Rental rates are steadily increasing
In 2015 rent outpaced home values in several housing markets across the United States, and it is steadily increasing: In most metropolitan cities, monthly rent is comparable to that of a monthly mortgage payment, sometimes more.Wouldn’t you rather your paycheck were going toward your own appreciating asset rather than handing it over to your landlord each month and kissing it goodbye forever?
Reason 3: Home prices are stable
At the moment buyers have the opportunity to capitalize on a cooling phase of the housing market. Home prices, which have been climbing steadily upward over the past few years, are reaching a point of stabilization. A stable housing market levels the playing field between buyers and sellers and helps buyers drive a harder bargain.
Reason 4: Smaller down payments are needed
A big obstacle that prevents millennials from purchasing their first home is scrounging together the extra cash for a down payment. However, thanks to a variety of programs to aide home buyers, an okay credit score could be all you need to score a downpayment as low as 3%.
Reason 5: You’ll get major tax breaks
Homeowners get tons of tax breaks, which is another great reason to purchase a home this year. One of biggest breaks you’ll get (unless your home loan is more than $1 million) is a deduction on all the monthly interest you are paying on your home loan. That could amount to a lot of savings when it comes time to file taxes. Furthermore, homeowners can also deduct certain home-related expenses and home property taxes.
Related: 8 Great Homeowner Tax Deductions
Reason 6: More real estate listings
As prices are plateauing, more homeowners are expected to put their homes up for sale in 2016. Homebuilders are also planning to focus on middle-range and starter homes next year, which will provide a much-needed boost to housing inventory.
Berkshire Hathaway HomeServices Beazley REALTORS® can help you find your dream real estate in the Augusta metro area.
If you feel pretty good about your income and employment, and are looking to purchase a home in 2016, now is the time to secure those low interest rates.
Need help making the right real estate purchase? Our REALTORS@ can help. Call Berkshire Hathaway HomeServices Beazley REALTORS® today and we’ll put you in touch with one of our amazing real estate agents who will find you the perfect home within your budget.
Feel free to check out our selection of affordable new home neighborhoods in Augusta, GA and Aiken SC, built by award winning home builders with value and beauty in mind. Berkshire Hathaway HomeServices Beazley, REALTORS® can be reached by calling 706-863-1775.