Reasons Now is the Time to Buy

It’s a strong seller’s market, but did you know it’s a great time for buyers too? Lots of buyers are concerned with the low inventory and high competition. However, if they allow that to stop them from buying it could cost them in the future. Read on to learn why.

Home Prices

7.7% is the average amount that industry leaders believe home prices will increase over the year (Keeping Current Matters). That’s a substantial jump for a year to year evaluation. To put it in perspective, that means that a home worth $300,000 this year could be valued at $323,100! Just one year later you would end up borrowing thousands of dollars more for the mortgage. In addition, mortgage rates are projected to increase, which means waiting costs you more in interest as well.

Mortgage Rates

The interest rates for mortgages reached a record low last year. They remained low into 2021 as well, but they are slowly starting to rise again. Currently rates are around 3%. However, most estimations have the rates rising to 3.5% by the beginning of 2022. The combination of increasing home prices and interest rates is a recipe for a much higher monthly and overall interest payment for the life of the loan. Click here if you’re interested in seeing a fictitious calculation of payments.

What does that mean for me?

To put it simply…this could mean that the longer you wait the more money you will end up spending. Check out the graph of projections from Keeping Current Matters. These increases may seem small, but over time they can easily become significant.

At first it may seem like a good idea to wait to buy a home, but in reality that could cost you. Our team is happy to help if you’re ready to begin looking for your new home! Connect with us HERE.