According to recent data from the US Commerce Department, homes are being built across the US in rapid fashion, and they are being bought up equally as quickly. In fact, the data shows that the housing market is heating up to speeds not seen in thirty years.
What Does it Mean for You?
Unemployment data shows that unemployment currently sits at about 4.7%. Any time that unemployment sinks beneath 5%, we begin to see an uptick in wage growth. This means that all of those people who have been renting for the last eight years should be able to afford a house if they would like.
If you are a first-time homebuyer in Thousand Oaks, CA, it would be prescient for you to consider buying a home at this time too. There are three really good reasons for that:
- As individuals sell their old houses and move into a new house during this growth period, it is very likely that there will be some great deals on the market for incredible houses that have been well kept.
- The Federal Reserve predicts that inflation will be on the rise over the next decade. During inflationary periods, the housing market tends to do extremely well. This means that if you purchase a house now, upkeep it well, and live there for the next 10+ years, you are quite likely to have a good return on your investment when it comes time to sell.
- Currently, interest rates are still at historic lows. This means that getting a mortgage is about as cheap as it can get. Currently, the federal funds rate sits at .25-.45%, and 30-year fixed mortgages only cost about 4.25% APR. So, assuming you can pay the down payment to avoid PMI insurance, houses are relatively cheap to finance!
With all of these things in mind, the reasons to buy a home right now are too good to pass up. This is particularly true in states like California that have a massive, continually growing population that will help to prop up the housing market over the coming years, especially in the Thousand Oaks area.
So, whether you are a first-time home buyer just looking to get your feet wet or a professional property flipper, buy a home now and enjoy the results!