3 Reasons To Buy Your Home Before 2014

by c21commonweath_ldowling 11. November 2013 12:53

2013 will be over soon, and if you're a potential home buyer in the Boston area, you may be wondering if your purchase should wait. With the stress of the holidays almost upon us, is now really the time to buy a home?  Based on a number of economic factors, the answer is "yes."

Get In While Interest Rates Are Still Low

Interest rates are still historically low, but there are signs that will change soon. Federal Reserve Board chairman Ben Bernanke has indicated that the Quantitative Easing program he has instituted to encourage low interest rates may be on its way out. This would mean that the Federal Reserve would no longer be buying mortgage-backed securities and treasuries in an effort to stimulate the economy. Without this help, interest rates on mortgages will no doubt go up. One of the reasons the Quantitative Easing program might go away sooner rather than later is fear that it could contribute to inflation. As a home buyer in Boston, now is the prime time to buy - take advantage of the low interest rates Quantitative Easing is bringing about before it goes away AND lock in a good interest rate in the event it affects inflation.

Winter Weather Rewards the Persistent

There is a lot of home buying activity in the summer, but fall and winter find more home buyers sitting on their hands. For a buyer, this means less chance of a bidding war, and in all likelihood, easier negotiating with a highly motivated seller. A home buyer can also get a better sense of the condition of the home. Is it drafty, heated evenly, well-insulated? Winter in the Boston area is hard on the heating bills, and buying during this season will give you a better sense of how your future home stacks up.

2014 Brings New Regulations

There's no fixed deadline set for the end of Quantitative Easing, but January of 2014 will bring a new mortgage rule that could affect home buyers in the Boston area, though it affects buyers nationwide. As of 2014, the Consumer Federal Protection Bureau (CFPB) will discourage banks and lenders from making loans where the ratio of debt- to-income is higher than 43%. If this rule had been in place in 2012, almost 1/5th of home-owners would have had to buy a less expensive home, or increase the amount they spent on a down payment. Sidestep this wrinkle in the home buying process altogether by buying in 2014.

There are many compelling reasons to buy a home in the greater Boston area this winter. Grab your gloves and a winter jacket, and find your dream home this year!