With everything going on in the housing market right now, you may have a number of questions about what that means for you and your plans to buy a home. Here are three things that are likely top of mind for you.
In 2022, inflation reached a high not seen in 40 years. As it did, you probably felt the pinch at the gas pump and in the grocery store. But inflation did more than increase the cost of goods and services, it also led to the rapid rise in mortgage rates. CNET explains:
“As a general rule, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.”
As mortgage rates rose, they impacted your purchasing power by increasing the cost of buying a home. And moving forward, experts agree rates will continue to respond to inflation. If inflation eases, rates may decline as a result.
Headlines about home prices can be confusing. While home price appreciation has cooled, where home prices will go from here will vary based on supply and demand in our local market. That may be why some experts say prices will decline slightly and others say they’ll continue to climb, just more moderately than they have been.
Even with higher mortgage rates and today’s home prices, it can still make sense to buy a home today. That’s because buying a home is so much more than just a financial decision. It’s a lifestyle choice as well. As Freddie Mac, says:
“Deciding whether to rent or buy depends on your financial situation, future plans and lifestyle. Both options have benefits that you need to carefully consider before making your decision.”
If your needs have changed or if you are looking for a space that’s truly your own, there are still many compelling reasons to buy a home today. The sense of accomplishment, the wealth building opportunity, and the chance to stabilize your monthly payments can make it all worthwhile.
Bottom Line Don’t let the uncertainty in the market put your dreams on hold. Let’s connect so you have an expert on your side to answer all your housing market questions. Together, we’ll review your goals and what’s happening in our market so you have the information you need to make a powerful and confident decision.
If you want to buy a home today, here are a few things experts say you should know about what to expect and why homeownership is so important.
Expert Insights for Today’s Homebuyers
Buyers will continue to see less competition for homes and have more time to tour homes they like and consider their options.
VP and General Manager, ShowingTime
While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.
Chief Economist, First American
The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.
Chief Economist, realtor.com
Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you're building equity in your home. . . . When you rent, you aren't investing in your financial future the same way you are when you're paying off a mortgage.