If you did not buy in 2014, you may want to consider buying a home soon. Home prices in the US climbed by 13.6% over the last 12 months according to Standard & Poor’s/Case-Shiller 20-city home price index, which has a positive impact on Canadian house prices inderectly also. Home prices went up in Niagara region- ranging from 13.35% in Lincoln, 4.4% in Niagara Falls but only .39% in Fort Erie. In most cases, home prices go up more each year then the interest rate so each year a home owner in ahead . Also keep in mind that the increase of home value each is growing the actual downpayment. so if a 1st time buyer put down 10% ( 20,000) of 200,000 and the home value increase by 5% which is 10,000 then the owner actually makes $10,000 on their $20,000 downpayment which is almost 50% rate of return on the initial investment.
If you are thinking to buy your first home, or move up, plan to do it now while mortgage rates are still low and before the home prices increase out of your reach. Real estate forecasters predict that 2015 will be another great year. Home prices are predicted to rise another 5% next year according to Weinstock. Higher mortgage rates will slow both sale and price gains to a certain extent but will not bring them to a halt. Weinstock says that aside from predicted price gains, buying a home is always a wise investment long term.
Here is something to consider per Weinstock “When one rents, at the end of the year he or she has a pile of 12 cancelled rent checks, however, the homeowner has a pile of 12 cancelled mortgage checks that are nearly fully tax deductible in most cases.
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