If buying a new home is one of your New Year’s resolutions, the goal may be more achievable than you’d think. Here are five factors that make now a great time to buy a new home in Tampa Bay:
1. The economy is better than it has been in years
One of the best reasons to buy a new home in 2017 is the simple fact that the economy looks pretty good right now. The national unemployment rate is down to 4.7 percent, the lowest it’s been in years, and job growth in the Tampa Bay area is healthy. Additionally, home prices have almost fully recovered from the economic downturn, making homeownership a stable and valuable investment.
2. Mortgage rates are still low
Mortgage rates are slowly beginning to rise, but they are expected to remain relatively low for the first part of 2017. With rates in the mid-4 percent range – compared to 6.4 percent in 2006 – the numbers are still low for homebuyers. According to Realtor.com, however, mortgage rates could go up by as much .75 percent over the course of 2017. Those looking to buy a home this year should act quickly to lock in rates before they go up.
3. Rents are rising rapidly
Trulia reports that nationally, buying a home is currently 37.7 percent cheaper than renting. In the Tampa Bay area, rents are rising faster than in any other metro area in Florida, according to the Tampa Bay Times. In the past year, Tampa Bay rents increased by about 4 percent, on average.
Renters considering signing a new lease may want to look into the possibilities of buying a home as an economical alternative.
4. Home values are increasing
As the value of a home rises, the homeowner gains equity and the property becomes a stronger investment. Home prices have been increasing steadily as the economy has recovered, but they have not yet reached a peak in the current market cycle. There is still time for your home to appreciate in value. However, rising interest rates may cause home prices to stabilize later in the year, so buying in early 2017 will give homebuyers the best opportunity to gain property value.
And to make the home buying process even easier, Lennar will pay up to $15,000 in closing costs in all our Tampa Bay communities.
5. The demand for new homes is strong
Each of the factors outlined above is contributing to an increased demand for homes for sale in prime locations. Many current homeowners are taking advantage of the good economy and low mortgage rates to upgrade, downsize or move to a more desirable area.
Similarly, long-time renters recognize the value in buying a home versus renting and jump at the opportunity to buy while the market is favorable. This has led to an influx of first-time buyers, including many millennials, in the Tampa Bay market.
Although new home inventory in the Tampa Bay area is healthy, anyone thinking about buying a home in 2017 should consider doing so soon to avoid the possibility of increased demand from buyers leading to fewer choices in the market.
Lennar offers a wide range of price points in more than 50 communities in the Tampa Bay area to meet the needs of homeowners at all stages of life, such as young families and first-time homebuyers. To learn more about Lennar communities in Tampa Bay and the homes available, visit the Tampa homepage or call 877-205-1328.
