Why buy now?
May 18, 2021
The housing market was an unexpected winner in 2020 with a record number of new buyers that took advantage of low interest rates and settled into new homes by the end of the year. To a degree, that storyline has continued into 2021, but conditions are starting to slow down again as the rest of the economy recovers.
If you are still considering a move, why buy now? Wilkinson Homes evaluated the current market and answered this question below.
Mortgage rates are still low
An old adage claimed that mortgage interest rates “never drop below three percent.” However, according to FreddieMac, we saw seven consecutive months of sub-three numbers starting last August. This was a calculated move to spur the economy and it worked with home sales hitting a 14-year high as a result.
The April average for a 30-year fixed-rate mortgage is hanging right above this line at 3.06 which is still .25 points below the 2020 mark and more than a full point below 2019. This number is expected to rise which makes now a good time to buy and save a significant amount over the life of a loan.
Prices are going up
One downside of the sustained high demand is a shortage in both the supply of existing homes and the materials needed for new home construction. These factors are contributing to rising costs across the country and the increased occurrence of bidding wars as we mentioned in the last blog. Overall, home prices are up 10 percent year-over-year.
Homes are smarter and safer than ever
Another reason why so many homebuyers flooded the market this year is a desire for innovation. Over three decades, Wilkinson Homes has evolved to offer beautiful and modern floor plans that are more functional and energy-efficient too using the latest building techniques, materials, and technology. Floor plans are designed for comfort and convenience with one and two-story floor plans that are easy to adapt and make the home your own.
Buying with Wilkinson Homes
Ultimately, the decision is up to you and whether the timing works for your individual needs. That is why Wilkinson Homes sets up a complimentary meeting for buyers with an expert financial liaison at the beginning of the home buying process to help further evaluate the market. Homeowners also work with Sales Managers and designers.
If you do decide that now is the time to buy, Wilkinson Homes builds semi-custom homes in established communities across the state of Delaware and Chester County, Pennsylvania.
When you are ready to start building your dream home, call or text 302-275-1567 or fill out this form or contact us.