Four reasons to buy a home in 2016


If becoming a homeowner made it to your list of New Year’s resolutions, this is a great year to buy. With home inventories expected to increase slightly, and with a good job market and solid financial conditions, 2016 is shaping up to be a great year to get into your dream home.

Here are four reasons why 2016 is the year to become a homeowner:

Rental rates are high. Rental rates have been escalating the past few years and are expected to continue climbing.  Quite frankly, owning a home may be less expensive than renting. While saving for a down payment can be a challenge for some, a mortgage may be the better deal for many individuals. Your monthly mortgage payment will contribute to your own net worth, not someone else’s, and that asset will usually appreciate in value. Also, the interest you pay each month on your loan is tax deductible and could save you a significant amount of money at tax time.

Interest rates are low. Interest rates are low, but they won’t be forever. If your credit is good, your job history and income are solid and consistent, you may be able to take advantage of a lower interest rate now. Those factors play into what your potential interest rate will be. We may see some fluctuation in rates this year, so the sooner you make that decision and lock in a rate, the better deal you should expect to get.

Home prices are increasing. As spring approaches, more homeowners are expected to place their homes on the market. Those additions to the marketplace should provide a much-needed inventory boost. Home prices in and around Nashville have increased fairly substantially the past several years, and projections indicate that they will continue to increase given our solid economic environment. If you’ve been thinking about buying a home, now is the time to make that decision to move forward.

Mortgage terms are clearer.  With the recent changes in disclosure documents that lenders are required to provide, homebuyers, especially first-time homebuyers, have a better understanding of the terms of the loan and what is expected of them as a consumer. These documents help buyers better understand their financial commitment so that there are no surprises at the closing table.

If you’ve been wavering about whether or not to purchase a home of your own, 2016 might be the year to take the plunge. Contact a Realtor today to discuss your options so that you can keep that 2016 resolution!

Denise Creswell is president of the Greater Nashville Association of Realtors. A Realtor is a member of the National Association of Realtors who subscribes to its strict Code of Ethics. Contact her at 615-473-1663 or denise@denisecreswell.com.