2015 is the Year to Buy a Home!

We can provide you with an endless list of reasons why you should buy a home.   If you are renting, you should buy a home so that you can have more space, personalize your space, paint your walls, park in a garage, have a backyard, take advantage of tax savings, etc.  The list is endless.  If you already own a home but are considering a move, we can provide myriad reasons to make the change as well.   A new home can provide you with an updated open floor plan, easier for entertaining.  Maybe you need more bedrooms.  Maybe you need less space to maintain.  Perhaps you want to live closer to work, or closer to loved ones.  A new home can provide exactly what you are looking for.  Whether you are a renter or a homeowner, here are 3 reasons why 2015 is the time to BUY a NEW HOME.

1. Interest Rates are Unbelievably Low.

According to HSH Associates, the nation’s largest publisher of mortgage information, the rate for a fixed-rate mortgage during the last week of 2014 landed at 3.98.  This rate is even lower than the rate we applauded during our October blog post!  Just as we did in the previous post, taking this very low interest rate, we used the mortgage calculator on Zillow.com to determine the monthly mortgage payment on a $220,000 home.  The calculated payment assuming a 30-year fixed-rate mortgage with a 20% down payment and estimated taxes and insurance included on a $220,000 home was $1,125 per month! Market analysts are predicting rates will rise throughout 2015. If rates increase by 1 percentage point, assuming the same calculations as above and including the higher interest rate, a $220,000 home would have a monthly mortgage payment of $1,231.

To truly take advantage of these amazing interest rates, we suggest you shop early for a new home to avoid the risk of rising rates.  Of course, even if rates rise marginally, they are still historically exceptionally low. Consider how much more difficult it was to buy a home just one generation ago.  In 1981, rates on a 30-year fixed mortgage were more than 18%, and homes were still being sold!  The $220,000 home in the above example would have cost more than $2,600 monthly, even with a 20% down payment!  This staggering number really emphasizes how low rates truly are right now.

2. New Homes are Energy Efficient, which will save you a bundle on monthly bills!

Over the last ten years, the performance of the materials used to build a new home has improved dramatically when it comes to energy efficiency.  Changing building codes ensure that homes built today are drastically more efficient than existing homes.  Most figures indicate that a newly built home is up to 30% more efficient than one built in 2004. 

There are dozens of components that have an impact on the efficiency of a home. Low-E windows deflect the sun’s UV rays, keeping the interior temperature more stable while also eliminating penetration of cold winter weather.   Stricter requirements with regard to the insulation in a new home allow for better protection from the heat and cold.  Low-flow toilets and efficient faucets reduce unnecessary water use.  Energy-efficient appliances reduce the total amount of electricity used in a new home when compared with a used home. 

When considering a move to a new home that might have a slightly higher monthly payment, keep in mind that your monthly utility bills will likely be LOWER in a new home, which will offset any increase in your payment.  Buying new just makes sense when you consider the savings you will realize in your bills.  And you will also be doing your part to protect the environment!

3. Make it YOUR OWN

You are in control of both the FUNCTION and the DESIGN of your home when you buy new.  You have the luxury of choosing the floorplan layout that works best for your family.  New homes offer modern floorplan options that suit today’s lifestyles.  Plans generally include grand closets, open kitchens great for entertaining, mudrooms, and options for first-floor guest suites.  New homes include updated features and options for wiring all of your electronic and digital gadgets. 

When it comes to design, the options available in 2015 are endless!  Choose from luxurious granite countertops in an array of colors and patterns, tile backsplashes, hardwood and tile floors, plush carpets, and cool new paint colors.  When you buy new, you are given the opportunity to truly personalize the space instead of settling for someone else’s choices. 

So what’s holding you back?  You know it’s the right time to buy.  Contact a New Home Specialist today and take the first step toward owning a brand new, energy-efficient, perfectly designed home, at an incredibly low interest rate!