Real Estate Questions – Know the Answers
If you are in the market to buy a home, you may be 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 to help determine if now is a good time for you to buy in today’s market.
1. Why am I buying a home?
Forget the finances for a minute. Why did you begin thinking about purchasing a home? For many, the reason has nothing to do with money.
A survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”
This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed the following the top four reasons people buy a home:
- A good place to raise children and for them to get 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 Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in December 2016 was $232,200, up 4.0% from last year. This increase marks the 58th consecutive month with year-over-year gains.
If we look at the numbers year over year, CoreLogic forecast a rise by 4.7% from December 2016 to December 2017. On a home that costs $250,000 today, that same home will cost you an additional $11,750 if you wait until next year. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.
3. Where are mortgage interest rates headed?
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, and Fannie Mae have all projected mortgage interest rates will increase over the next 12 months:
Real Estate Bottom Line
Take a close look look to make sure if now is the right time to purchase a home. If you have questions, don’t hesitate to reach out to me – happy to help!