Looking to Buy a House? Hold Up.
We are still in a seller’s market. It also means that if you are looking to buy a home, you are likely to face unique challenges such as B. Difficulty finding housing and volatile mortgage interest rates. But remember, there are some perks to being a buyer in today’s market that give you good reason to keep searching. Here are some of them.
Long-Term Benefits Outweigh Short-Term Challenges
Owning a home increases your net worth. Building that wealth takes time, so it makes sense to start as early as possible. If you wait to buy and keep renting, you’ll miss out on your monthly mortgage. Freddie Mac says:
“Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step toward achieving long-term financial stability.”
The key to this is long-term. This is because the economic benefits that homeownership provides, such as increased value and equity, increase over time. These benefits are worth the short-term challenges presented by today’s seller market.
Mortgage Rates Are Constantly Changing
Mortgage rates have hovered around 6.5% in recent months. But Freddie Mac’s chief economist, Sam Cater, said there has been a downward trend recently.
“Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . .”
Low mortgage rates increase purchasing power and can make home ownership cheaper. Realtor.com economic data his analyst Hanna Jones explains:
“As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”
The recent drop in mortgage rates is good news if you weren’t able to buy a home during peak times.
Home Prices Will Increase
After a modest decline this year, home prices will rise steadily over the next few years, according to a survey of more than 100 real estate professionals to predict house prices (see chart below).
Rising home prices in the coming years mean two things for you as a buyer:
- Waiting to buy a home could mean it’ll become more expensive to do so.
- Buying now means the value of your home, and your net worth will likely grow over time.
ARE YOU TRYING TO BUY OR SELL HOME? CLICK THE LINK BELOW!!
May 4, 2023
