Why you should consider buying a home in today’s market
Back to BlogHomeownership has always been a smart financial move, but now is the time to buy more than ever. The housing market is booming, and that means homeowners are enjoying higher property values and more equity in their homes. If you’ve been waiting for the perfect moment to make the leap into home ownership, here are four reasons why you should stop waiting:
If you’re debating whether to buy a home because you’re worried about rising interest rates and a lack of inventory, know that there’s no reason to wait.
If you’re still in the process of deciding whether or not to buy a home, there are many reasons why now is a good time for you to take the plunge. Interest rates remain low and inventory is increasing—but not as fast as it was a few years ago. If an increase in interest rates is your primary concern, consider that 15-year fixed-rate mortgages are still an option. Not only will they allow more flexibility than 30-year mortgages when adjusting your rate later on down the road, but also they’ll help keep monthly payments lower while providing substantial savings over 30 years of homeownership (over $100,000).
If you’re worried about rising interest rates and limited inventory, know that there’s no reason to wait: today’s historically low mortgage rates coupled with increasing inventories offer more advantages than ever before!
Home prices aren’t going anywhere but up, both in the short term and in the long term.
You’ve read this right! In fact, home prices have increased over the last ten years. Between 2020 and 2022, median home values increased by over 30%. And median home prices in the U.S. increased by 416% from 1980 to 2020 – with the current median home price in the United States listed at $428,700.
And what about those predictions for future growth? They’re pretty rosy too. According to a recent study conducted by Zillow Research and Pulsenomics LLC for The Wall Street Journal (WSJ), “The trend toward increasing housing affordability has been largely uninterrupted since 2002.” Moreover: “Looking ahead five years from now, we expect homeownership rates will continue to increase while rents grow at a slower pace.”
More new homes are being built, and many existing homeowners have refinanced their homes to take advantage of lower interest rates.
There’s a lot more new construction going on than you think. In fact, the National Association of Home Builders reports that single-family housing starts have been at their highest level since 2007. Many existing homeowners have refinanced their homes and can afford to pay cash for the down payment on another house. This makes them good candidates to sell their current home, buy one that better suits their needs and wants, and still have money left over to put toward a down payment.
If you’re waiting for inventory to increase or prices to drop – don’t hold your breath.
The market is changing slowly, but it isn’t slowing down. Inventory has increased in recent months and that means more properties are available for sale. However, these homes are still selling quickly and often at higher prices than their previously unlisted counterparts. In fact, the median sale price across all homes has increased for five consecutive quarters now (and six of the past seven). This means that there aren’t enough affordable houses in many markets! As a result, homebuyers are likely feeling pressure from their clients who want them to find something fast so they can make an offer before another buyer snaps up what they want before they even know it exists.
There are many benefits of homeownership beyond financial gain.
Owning a home offers many benefits beyond financial gain; when you own your home, you can make improvements to it as well as make changes to suit your needs. When you own a house, for example, you can paint the walls in any color or style that pleases you. You don’t have to worry about someone coming in and changing things back later on down the line because this is your house!
You have the freedom to change out kitchen cabinets (or even everything!) if they’re not up to par with what you like. It’s also nice knowing that if there’s something wrong with your plumbing or heating system, only you will be responsible for fixing it rather than blaming someone else for letting maintenance lapse during their time living there.
Don’t wait to buy a house!
You should buy a home now because if you wait, it will be harder. Prices are going up and interest rates are going up. Inventory is decreasing, which means there will be fewer houses to choose from when you’re ready to buy one. You can’t afford to get priced out of the market by waiting until later on in life: after you’ve gotten married or had kids, or maybe even just moved into an area where your income won’t support buying a home. And if all these reasons aren’t enough for you not to wait, consider this: mortgage eligibility requirements are changing regularly so that potential homeowners may need more money down than they thought possible in order for them to qualify for financing on their new purchase! So do yourself a favor—buy now before it’s too late!
Are you ready to make your next move?
Buying a home is an investment in your future and that of your family. It’s time to stop waiting for housing prices to drop and for inventory levels to increase. Instead, make the decision today that you’ll buy a home in the near future – you won’t regret it!
When you are ready to make your move, contact South Dakota’s most experienced real estate professionals at Century21!