Austin is the #1 best city to invest in real estate in the U.S. and with over 100 people moving here everyday, there will always be demand for housing. But with all of the uncertainty in the upcoming year, we turned to one of Austin’s top lenders, Max from the Max Leaman Team and asked him why you would want to invest in Austin real estate right now.
4 Reasons To Buy Right Now from Max Leaman
1 – Mortgage Interest Rates Still Historically Low
Since the Presidential Election, rates for home loans have seen a steady uptick. Today, rates are still historically low, but given the current trend, we may see rates rise to 5% or more by the end of 2017. Keep in mind, the average interest rate in the year 2000 was over 8%, the average for 1990 was over 10%, and the average for 1980 was over 13%. Buying a home in early 2017 ensures you lock in your home loan at a historically low interest rate.
2 – Increasing Loan Limits Increases Your Buying Power
Beginning January 1, 2017, Austin-area homebuyers have more buying power with loan limit increases for most loan products. Conventional and VA loan limits rise from $417,000 to $424,100. Single-family FHA loan limits also increase in Austin-Round Rock rising from $333,500 to $361,000.
3 – Less Competition Gives You More Negotiating Power
Competition for homes is lower now versus in summer months when demand doubles. In summer months, it’s common for clients to be one of 10 offers on a home in the Austin area. Having a prequalification letter from a well-known, local lender reassures sellers and helps you win properties over other homebuyers. Also, buying in a less competitive month such as December, January and February can make a big impact in winning a property AND finding sellers willing to negotiate.
4 – Home Values Are Still Increasing
Historically speaking, Austin home values have increased 64% over the last 10 years, the highest increase seen across the U.S. by nearly 20 percentage points! The 2nd highest increase was seen in Denver with home values up 45.5% during that same time period. Texas cities faired well taking the remaining top 5 spots with Houston up 45.2%, Dallas up 43.6% and San Antonio up 35.9%. Read more about the study here.
Ready to Make the Move in 2017?
If you are considering a move in the new year, don’t hesitate to reach out to learn more about your options. We’d love to help you take advantage of these new government incentives and help you make the move in 2017.
- Austin Named No. 1 Best Place to Invest in Real Estate
- Austin Named 2nd Best City to Move to in U.S. News Rankings 2016
- Austin Named Best City For Startups And New Entrepreneurs 2016