Reasons Why You Should Purchase a House Today
Despite increasing mortgage rates, there’s still a number of attractive reasons to buy property in the current housing market – so if you’ve been considering taking the plunge into homeownership, now could be an ideal time. With the ever-evolving real estate market, buyers are presented with unique opportunities to get a great deal on their dream home. Now more than ever is an excellent time for those considering purchasing property.
Purchasing a home is an incredibly significant financial undertaking and should be made with knowledge, not fear. Amidst the flurry of sensationalist headlines circulating today’s market news, it can be difficult to discern fact from fiction – so take time to educate yourself on all that real estate has to offer before making any major decisions!
If you’re on the fence about whether to buy a home or continue renting, here are three reasons that may help you make your decision.
1) The number of homes on the market is rising
The National Association of Realtors (NAR) data paints a positive outlook for homebuyers, as the inventory of available homes has seen an impressive uptick since the beginning of 2020. The graph below illustrates this surge in supply.
The current real estate market presents amazing opportunities for buyers. You now have access to a wide range of homes, and competition from other buyers has abated – you no longer need to be the first one in line! The cause? An increased supply thanks both to homeowners listing their properties as well as extended residence time on already listed residences due moderating buyer demand spurred by higher mortgage rates.
2) Home prices are not expected to fall sharply
While predictions of a 2008-style home price crash have been dismissed, local markets and factors such as supply & demand remain key indicators in pricing. Consequently, market expectations vary widely – while some anticipate slight appreciation of prices others predict depreciation instead (as demonstrated by the graph below).
Though the current market outlook indicates stability, buying a home can still be an intimidating venture. However, expert projections for 2023 tell us not to worry about prices plummeting—straight-forward price appreciation is on the horizon so that you can feel safe investing in your future!
3) Although interest rates have increased, they will soon drop again.
Although mortgage rates have increased a lot this year, the fast increases we’ve seen recently have started to slow down because early signs show that inflation may be going down slightly. Where they’ll go in the future largely depends on what happens next with inflation. If inflation starts to decrease, mortgage rates could go down too.
Get ahead of the competition! Mortgage rates trending downward could lead to an influx in buyers, so seize your opportunity now. Lawrence Yun, Chief Economist for NAR suggests it’s smart to buy before more people return and increase the market pressure – don’t miss out on a potentially great deal for you and yours!
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
If you’re considering purchasing a home, this is a great time to do it. Home prices are low and interest rates are favorable. Give me a call today so we can discuss your options and start making your homeownership dream come true.