Buying a home might feel overwhelming, especially when it feels like everyone has advice to give you. We are sure your friends and family have your best interests in mind, but they might be missing some important information about the housing market.
Whether you’re a first-time homebuyer or experienced buyer, ask yourself these three questions to find out if you are ready to buy a house.
1. What's Going on with Home Prices?
When you purchase a home, the price is likely to appreciate or depreciate. Below we have attached a graph that shows how much experts are forecasting prices to rise this year:
If you are an existing homeowner, price appreciation is a great thing, but this can cause issues for those that are waiting to buy. In the graph above, you can determine just how much waiting can cost you. Let’s say that homes will keep increasing based on the Freddie Mac forecast. A median priced home that costs $350,000 in January 2021 will end up costing an additional $43,610 by the end of 2021. That means now is the time to buy a home.
2. How Long are Today’s Low Mortgage Rates Going to Last?
A large factor that may be influencing your decision to buy a home is the current mortgage rate. The mortgage rates right now remain close to record-lows. However, experts expect rates to rise just like home prices in the coming months. This is shown in the chart below:
Before you decide on buying a home, you should ask yourself why you want to become a homeowner and what it means to you. You might think of the financial benefits before you think about the emotional ones. The 2021 National Homeownership Market Survey explains that six of the nine reasons people value homeownership is because of how it effects them on a personal, and aspirational level. According to the survey, homeownership provides:
Additionally, a recent survey from NeighborWorks America highlighted the emotional benefits of homeownership.
As you can see, there is a tremendous value to homeownership beyond the financial benefits. Homeownership can impact your life by giving you a sense of pride, safety, security, and accomplishment.
Becoming a homeowner can make a positive impact on your life in several different ways. In addition to bringing, you closer to your community, homeownership also gives you a sense of pride, and security. If you’re considering buying a home, it’s important to work with an experienced real estate team. It’s even more important to start your homebuying journey with a conversation with a trusted lender to determine if now is a good time for you to buy and learn more about your financing options. Click the link below to start the conversation and start your journey off on the right foot!
Topics: Real Estate, Mortgages, Home Prices, First Time Homebuyer, Mortgage Rates, Market Outlook, Home Buyers, benefits of homeownership, Mortgages for Millennials, Pandemic Home Buying, Pandemic Housing Prices