4 Reasons Why NOW is the Best Time to BuySeptember 6th, 2022 | by Tia Lloyd | Posted in Uncategorized
Home Prices Rise Over Time.
This statement leads us to two good reasons to buy now. One, the sooner you buy, the more equity you create. Two, the house you are looking at will likely cost MUCH more the longer you wait. According to data from the S&P Case Shiller National Home Index Price, home prices have risen 30% since 2000. Waiting to hop on the train to buy your new home is keeping you from making those potential gains in real estate and/or making your future home cost more and more as the days go on.
It’s a forced savings plan.
When you pay your mortgage payment each month, a portion of that goes to the principal of your home loan. Rather than considering this an expense, consider this a savings plan to help you build your own equity.
Whether you rent, or you own home, you are paying someone’s mortgage.
Many renters are nervous about taking on their own mortgage payment, but unless they are renting for free, they are just working to pay someone else’s mortgage. If you’re going to be paying a mortgage, it may as well be your own! Not only that, but owning your own home gives you the ability to lock in prices. Landlord can change your cost at the end of your lease, but the bank has already negotiated your monthly payment for the life of the loan. While you may see some fluctuation in insurance or property taxes, your mortgage payment will remain the same amount over the life of the loan.
Interest rates are higher than previous history, but are still low compared to the last 30 years.
While interest rates may seem high now compared to the last few years, they are still at a historic low compared to the last 30 years. In the 1970’s and 80’s interest rates got above 20%! While we can never know how high they will go in our time, it’s comforting to know that you can lock right now (at what could be a low rate in the future) or be open to refinancing in the future if we see a significant drop.