Use these helpful guidelines to determine if you should start home-shopping now or wait until summer.
4 things every homebuyer needs to know about this spring’s housing market
Maybe you’re a renter who wants to start building something permanent (in the form of home equity that’s been growing at a pretty rapid rate). Or perhaps you already own a house and are ready to swap out your starter for your family’s forever place.
Even with recent economic shifts, market factors show there’s no need to put your dreams on hold. In fact, the latest report from ShowingTime, a supplier of real estate showing management technology, found that, in the past few weeks, springtime homebuyers have begun reappearing.
There are still advantages to buying now instead of later:
1. Housing prices will keep going up.
Based on CoreLogic’s latest U.S. Home Price Insights report, housing prices have appreciated 4 percent in the last 12 months alone. And, the report projects that home prices will not drop but should continue to rise at a slight increase.
Multiple experts say home price increases may be slower than what was previously anticipated, but growth still shouldn’t hit negative levels. If you’re ready to buy a home, it may cost more to wait.
Click here to connect with a local loan officer who’s fully equipped to help you close on your mortgage remotely.
2. Mortgage rates are low right now.
They’ve hit record lows, with Freddie Mac’s Primary Mortgage Market Survey showing around 3.3 percent as a recent 30-year fixed mortgage interest rate. Income growth may be affected by today’s economic changes, but mortgage rates are still projected to stay low and affordable.
Mortgage rates have a direct impact on your monthly payment. That’s why waiting to purchase until next year is a gamble: Rates could be higher, causing your monthly housing cost to automatically increase.
3. Either way, you’re paying someone’s mortgage.
Some renters may feel uncomfortable with the idea of taking on a mortgage and might put off buying their first house. But unless you happen to be living with a loved one rent-free, you’re going to be putting money toward a mortgage — whether it’s yours or your landlord’s.
As a homeowner, the monthly payment for your mortgage will function like “forced savings.” Each time you pay on your mortgage, your money will help to begin building your home equity with the potential to cash out on it in a few years. Monthly rent, in contrast, contributes to a landlord’s home equity and will most likely help their worth increase.
This may be an ideal time to start putting your monthly housing expense to work for you.
4. You can start your next chapter.
The actual cost of homeownership can be broken down like this: a home’s market value coupled with the current interest rate. As mentioned, home prices still appear to be rising.
What if these factors weren’t on the table? Would you still prefer to wait? This can tell you much more about the reason you want to buy and if it’s worth it to delay. Financial factors matter. But ultimately, you can’t put a price on having a secure place to raise your family, more room for kids and pets to grow, and total control over how you decide to customize and renovate.
The fact that now is an ideal time to buy is icing on the cake.
Signs point to a unique opportunity for this spring’s homebuyers
Housing prices are stable for now, and mortgage rates are near rock-bottom. Meaning, you might qualify to buy a house without having to increase your monthly payment. You can do it all remotely: Get prequalified, get your questions answered, and start narrowing down your top picks.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources are deemed reliable but not guaranteed.