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Interest rates are historically low, qualifications for mortgages have loosened, there is ample inventory of new homes on the market and with the energy efficiency that comes with new homes—you can actually keep more money in your pocket. Keep the following five reasons to buy a new home in mind while you're out this weekend house shopping:
Owning vs. renting
Buying a home is cheaper than renting in most parts of Salt Lake right now. According to the 2015 Salt Lake Housing Forecast provided by the Salt Lake Board of Realtors, "Salt Lake County's apartment building boom is pushing rental rates higher. New projects are typically renting for $1.40/square-foot or more." For example "a new 1,000 square-foot two-bedroom apartment rents for $1,400, which is higher than the mortgage payment on [a] median priced home."
The good news for you is that home prices in the Salt Lake Valley are affordable. Utahn's with a median income household can afford two-thirds of the homes sold in 2014.
Stretch your dollar further
Over the last three years, Utah homebuyers have been able to purchase new homes with some of the lowest mortgage interest rates seen in the last 44 years according to Freddie Mac. Low mortgage interest rates means lower mortgage payments and essentially more house for your money.
However, mortgage interest rates will rise this year. It is expected that the Federal Reserve will raise short-term interest rates by mid-2015. The expected rise in interest rates is supported by low unemployment rates and most areas of the United States showing strong job growth. The fluctuation of mortgage rates can negatively impact affordability, a home that you can afford right now at today's interest rates may be out of reach if interest rates rise. The time to buy is now.
Not a lot to choose from
There isn't a lot of great used home inventory on the market right now, but new home inventory is in ample supply. "According to the Wasatch Front MLS, the supply of used homes in the Greater Salt Lake market is at the lowest level seen in the market since prior to the recession," said Eric Allen, Director of Metrostudy's Utah/Idaho region.
Master-planned communities, like Daybreak always have a few homes ready to go on short notice, so if you're on a tight timeframe or prefer to buy a new home that's already complete, have a look at what's available now.
Save money
How does a $14 monthly energy bill sound to you? It should sound pretty nice. Purchasing a new home will save you on monthly energy costs.
Daybreak takes efficiency one step further—the average new home in Daybreak is 20-30% more efficient than the average new home outside of Daybreak saving you anywhere from $60 to over $1,500 every year. Some new homes in Daybreak that are ultra-energy efficient, like Garbett Homes line of Solaris solar-powered homes, are achieving HERS Scores of 40 or less and some homeowners have been able to get their monthly energy cost down to $14 a month.
Get what you want
When you buy a used home, you're unlikely to find a home that was decorated by your design soulmate—meaning that you're going to have to make compromises on all kinds of things that are expensive to change such as cabinets, exterior materials, flooring, countertops—the list can go on and on, and the renovation budget can add up fast.
Purchasing a new home allows you to work with the builder to find the right floor plan for your needs, and personalize the finishes to your own style. New homes also require less ongoing maintenance, there are less things to repair and replace.
New home communities, like Daybreak, offer amenities that you will never get in an old sub-division. Daybreak has more than 60 parks, neighborhood pools & splash pads, a 65 acre lake, schools within walking distance of home and something fun to do within a 5-minute walk of every home.
The spring buying season is well underway, come out to Daybreak this Saturday, March 21 from 11 am -3 pm for the Spring Open House to tour more than 20 brand-new homes that are ready for you to move in right now.
