Should you wait to buy a home, or continue to rent?
I had a talk with a potential customer the other day. She was asking about loan options and considering a condominium purchase. She said “My husband and I are going to hold off until things calm down.” Totally understandable, considering the low inventory/seller’s market environment we have been experiencing for the last year. It can be frustrating to bid and lose, or worry that you will overpay for your home and lose out in the long run.
Let’s take a look at some current data to see what is in YOUR best interest.
- We are still in a seller’s market, with more buyers than homes for sale.
- We are still at historic LOWS for interest rates. Just a few short years ago rates were in the 4% range.
- Currently a 30- year fixed can run as low as 3.25%. A 15- year fixed rate loan will run 2.35%. That’s pretty “cheap” money!
- We are still seeing homes appreciate in the 10-20% range annually.
- Inflation will cause everything to cost more, including your rent. Buying will stabilize your monthly housing expenses.
If you are on the fence and hesitating, my answer is this: I understand your frustration. I do. But I think home prices are lower this year than they will be next year. Let’s say you get a fixed rate loan this year. A half of a percent rise in rates will adjust your monthly payment up $90-100 for an average sized home. If the home value also increases 10%, your payment will go up $120-130 from where it would be now. It really benefits you to pull the trigger sooner, versus later, monetarily.
Need help? I’m here with the skills to get you financed smoothly!
Have a great week!