Is Now a Good Time for YOU to Buy?
If you are thinking about purchasing a home, you are probably getting a lot of advice. Though friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following 3 questions. It will help determine if now is actually a good time for you to buy in today’s market.
1. Why am I buying a home?
This is probably the most important question to answer. Forget the finances for a minute. Why did you begin to consider purchasing a home? What non-financial benefits will you and your family gain from owning a home?
A study by the Joint Center for Housing Studies at Harvard University reveals the following four major reasons why people buy a home – all of which have nothing to do with money.
- A good place to raise children and to provide a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of that space
2. Where are home values headed?
According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.
What does this mean to you?
Simply put, if you are planning to buy a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait till next year. Your down payment will need to be higher as well as it is based on a percentage of the purchase price.
3. Where are mortgage interest rates headed?
Buyers need to be concerned about more than just price. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.
The Mortgage Bankers Association (MBA), the National Association of Realtors (NAR) and Freddie Mac have all projected that mortgage interest rates will increase by approximately three-quarters of a percent over the next twelve months.
Real Estate Bottom Line
Let’s discuss if now is the right time for you and your family to purchase a home.