With the rise of interest rates in the past few months, many people decided to back off, and just wait for the rates to come down.
'Experts' are giving a variety of forecasts for both a rise in rates, and a decline. A lender published a video explaining, based on historical data and trends for the past 30 years or more, that the rates would decline after the first of the year. However, one thing we have all learned in the past few years is that nothing is happening the way we thought it would. So, while I'm holding onto that hope of a drop in rates, we truly can't be sure what will happen. All I do know is that there are still very good reasons to buy a home.
1. No overpaying! I, like many other realtors, felt the sting of loss when our buyers were continually outbid on homes they wanted. Or we were unable to go see the home and get an offer in fast enough. Sometimes, we would even schedule showings, show the home, only to find out the contract had been accepted prior to even looking at the home. Agents weren't being as diligent to update the status in MLS, so more disappointment.
In the current market, and in my area, we have more homes on the market dropping prices, than new homes coming on the market. This means that houses are sitting longer before offers are being made. This environment lends to a seller willing to negotiate on the price. So not only will you not have to overpay, but you may also even get a reduced price.
2. Interest Rate Advantages! While you may have a little higher rate right now, keep in mind, interest is tax deductible, so it will help you on your taxes at the end of the year. Many of your closing costs are deductible as well.
Also, if you get pre-approved and find a house you want to make an offer on, you can lock the rate in, so if it does go up, you are protected. But your lender can advise you best on that part.
Then when the interest rate does drop, you can look into refinancing down the line.
3. Home Prices! While the prices are not dropping as quickly as they rose, they rarely return to the 'old' prices. I looked at a home this morning that is almost $300,000 but was sold just 3 years ago at $180,000. Chances are really good that this home will never be sold for under $200,000 again, but we never know.
That being said, even though home prices are up, if you wait too long, and the rates do drop after the first of the year, the home prices may rise further, and you missed out. So, buying now keeps you at current market value on homes.
4. Owning is better than renting! We have all heard that, but it is true. Always buy the best house you can comfortably afford, in the best neighborhood, and take care of it. Don't overdo any remodels, or make crazy changes, and keep it in good condition. This will help you build equity.
We bought a house during a downturn in the economy a few years ago. It was new and had been sitting empty for several months, so we got a great deal on it. We lived there 6 years and sold it for well over $100,000 more than we bought it. It doesn't take that long to build equity if you are patient. But not buying, waiting on the perfect time, the right house, or whatever your reason may be, is not doing anything but taking money out of your pocket for a place to live.
Many who rent homes are paying fairly high rent, and that same amount monthly could get them a pretty nice home.
There are many more reasons to buy a home right now, these are just a few. So don't wait, give me a call and let's talk. I always say, a conversation is free, so why wait?