Why now is the best time to buy
While Portland’s market isn’t as hot as it has been in the past, the city and surrounding suburbs are some of the best markets in the country. According to a new study done by real estate group, Redfin, 14.5% of Portland homes listed in March 2014 were under a sale contract within 3 days. Why is now such a great time to buy a home in Portland?
Competitive Interest Rates
Interest rates aren’t as competitively low as they were in previous years, but they are still competitive considering historical trends, which is a huge added incentive to purchasing a home. While we have several loan packages, as of today you would be looking at an interest rate in the 3’s and 4’s, which would have been unheard of 10 years ago.
The median home price in Portland is only $309,000 (April 2014). In 2007, the median home price in Portland was $354,000. Affordability, combined with competitive interest rates and a solid inventory, allows owning a home for people in most income brackets. However, the median price has jumped 12.4%, which shows us that if you are considering buying in the near future that the longer you wait, the less affordable your home will be.
Rental Rates Have Increased
Expect rents to rise faster than home prices. Rents are expected to rise 4.2 percent, this year, versus 2.7 percent for home prices. This is especially important in Portland where the average rent is over $100 more/month than the national average at $1488 versus $1310. There’s a very good chance that an individual could spend less on a mortgage than on renting their home.
There are many reasons to purchase a new home. More importantly you want to know that your financing aligns with your long term goals. Options Financial removes the confusion and gives you the information you need so that you have the power of knowing. If you are considering purchasing a home this year, please contact us today so that we can get you the best financing possible.