Market Snapshot as of 8/5/23
The Right Time to Buy a Home is About You: 4 Reasons to Go for It
A potential home buyer never wants to hear about interest rates going up! You worry that you will not be able to afford what you want as a first time home buyer. If you are also going to be selling, you worry that you won’t find buyers for your home, which could impact your ability to buy your future home. The concern is understandable, but it is important to keep rising interest rates in perspective. Home ownership is much more than a numbers game. Remember these 4 reasons that tell you this really is the right time to buy a home, no matter what the real estate market is currently doing or what people are predicting it will do in the future. 1. You Have Done the Work and Are Prepared to Buy If you are in the market for your first home, you have done a lot of work to prepare to become a homeowner. You worked on raising your credit score by paying down debt. You’ve saved for a down payment. You may have passed on taking vacations or buying a new car in anticipation of buying a home. Do not let all of that hard work go to waste! If you wait for interest rates to fall before you buy, you may be waiting for a long time. Unfortunately, they could also rise while you’re waiting. It’s also likely that you will lose out on homes that will never be priced this low again. There is still low home inventory and less on the market to choose from to begin with. So it’s more important to be prepared to act on the right home when it becomes available than wait for a lower interest rate. 2. You Too, Can Buy Now & Sell Later Whether this is your first, second, or one of many homes, understand that it does not have to be your last. Many buyers hold out waiting to find the “perfect” home. This often results in lots of time searching only to settle or worse, end up so discouraged they put their dream on hold. Instead, if you are ready, willing and able to buy a house, buy one now knowing it’s a stepping stone to the next one. Interest rates will fluctuate, but housing & rent prices continue to rise. Houses will not be cheaper to build in the future. Enough houses to fill the inventory gap will not suddenly appear. The demand for houses is higher than the supply, therefore prices will increase. This means you can buy that house today and start building equity now while prices are going up. In a few years you can sell, and it’s likely that you’ll walk away with an even higher down payment for a new house that is closer to your original “perfect” home. 3. You Will Be Benefiting from Selling a Home If you are already a homeowner, the historically high equity you probably have is a huge benefit. If you really take a look at the equity you have in your home, you may find that the current interest rate is irrelevant because your next home purchase is going to be all cash due to the money you will make on the sale of your home! Use our site's own home evaluation calculator to see what your home is worth. Even if you are taking out a loan, the equity you have in your home and strong home prices mean that you may be able to put more money down, resulting in a smaller loan and a lower mortgage payment. This can allow you to make additional payments to the principal and get your loan paid off sooner, saving you interest payments in the long run. Many lenders are also offering deals on refinancing if done within a certain number of years after you purchase your home. 4. You Are Making an Investment in Your Future Whether you are considering buying a home for the first time or considering buying for the tenth time, you are making an investment in your future. Chances are, even if you’re a first-time homebuyer not bringing any proceeds to the table, your monthly mortgage payment will still be lower than your rent. And, unlike your rent, every payment is money you are gaining in equity. Someone has to say it, paying rent is paying 100% interest. The time to buy a new home is when you are ready to do it. Your home is about your life and where you want to live it. If your time to buy is now, I am ready to start finding you the first, or next, home of your dreams!
Lincoln Market Snapshot as of 7/27
Categories
Recent Posts
