After the Portland real estate market, as well as the Oregon real estate market, witnessed the housing bubble ‘pop just over a few short years ago, many potential buyers are still a little hesitant to pull the trigger on their new home purchase. Today though, we will go into detail that the ultimately greatest risk a potential Portland home buyer can take as of right now is actually waiting to purchase that dream home. We of course realize that each and every purchaser ideally would like to be able to get the greatest amount for their purchase. Everyone wants a great price and the lowest possible mortgage interest rate available as those two items combined will determine the monthly cost that their family will ultimately pay. Lets take a quick look at each one:
Are real estate prices rising?
Just earlier this week, the Case Shiller Pricing Index was released. The index showed that United States real estate prices have increased by 10.2% over the previous twelve months. During May though, the Home Price Expectation Survey was shown predicting that overall real estate values would still increase by at least an additional 3.5% for each of the next five years. If you were waiting for the absolute bottom of the home price declines, you already missed it.
Are interest rates in fact rising?
In accordance to Freddie Macs Weekly Primary Mortgage Market Survey, the current 30 year mortgage rate has shot up to 3.81% this previous week alone the highest level in over a year. This is a huge increase of over a half of a percentage point in the last six months. And the Mortgage Bankers Association, Fannie Mae and the National Association of Realtors are all currently predicting that interest rates will continue to dramtically rise over the next eighteen months.
Purchasing a home in Portland is better done now than later! Portland real estate is on the rise and the longer you wait, the more you can actually lose out on saving. It is a bidding war out there and selling your home has never been a better time. Buy now and sell now for the best possible price on your amazing home.