Trying To Buy a Home? Hang in There.

Have you put your search on hold because a talking head on your favorite cable news network has predicted the market is going to crash?

Or maybe your Mother’s cousin’s best friend, who worked in the real estate profession 20 years ago, says that prices are going to drop?

For better or worse we’re still in a sellers’ market. So, the question is how long are you willing to put your life on hold?

There are some unique challenges facing buyers today from limited inventory to volatile mortgage rates. But keep in mind, there are some benefits to being a buyer in today’s market that give you good reason to stick with your search. Here are a few of them.

Long-Term Benefits Outweigh Short-Term Challenges

Owning a home grows your net worth – and since building that wealth takes time, it makes sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity. Freddie Mac puts it this way: “Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step towards achieving long-term financial stability.”

The key words here are long-term, because the financial benefits that homeownership provides, like home value appreciation and equity, grow over time. Those benefits are worth the short-term challenges today’s market presents.

Mortgage Rates Are Changing

Headlines only talk about mortgage rates increasing. But, the fact is they’ve dropped below 6% to the mid-5’s, in some cases. Sam Khater, Chief Economist at Freddie Mac, notes, that “economic uncertainty continues to bring mortgage rates down.”

Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable.

So, the recent drop in mortgage rates is good news if you couldn’t afford to buy a home when they peaked.

Home Prices Will Increase

According to the Home Price Expectation Survey, which polls over 100 real estate experts, home values will go up steadily over the next few years after a slight decline this year (see graph below):

Rising home prices in the coming years means two things for you as a buyer:

Continuing to delay buying a home could mean it will be more expensive when you finally do;

Buying now means the value of your home, and your net worth, will likely grow over time.

The Bottom Line

If you’ve been trying to buy a home, hang in there. Mortgage rates have ticked down and home prices are forecast to increase in the coming years meaning the long-term benefits of homeownership outweigh many of the short-term challenges.

If you’re ready to buy — or are giving it strong consideration — we’re happy to meet with you and give you an honest assessment of the market and what your options could be. Let’s connect at 508-360-5664 or [email protected].

Shred Your Important Documents

Great White Shred will be available this coming Saturday, April 15, from 10:00am – Noon at the Today Real Estate parking lot on Cotuit Road in Sandwich for you to safely dispose of your valuable documents.

As you know, identity theft is major problem that can impact your credit, your ability to make major purchases, etc. — sometimes for years. Merely ripping up important documents and putting them in the weekly trash is not the safest way to dispose of them.

There’s no charge for this, but we do ask that you kindly bring a donation for the Sandwich Food Pantry. Thanks.

Mari and Hank