If you're considering buying a home but you're not sure what to do, you might be getting a lot of advice from friends and family. While they likely have your best interests at heart, it's a good idea to remember that they may not be aware of the current market or your personal needs.
To help you decide if buying a home really is a good idea for you, ask yourself the following 3 questions:
1. What is my main reason for buying a home?
This question will make your intentions clearer. Why do you want to own a home in the first place? It's not always about money for homeowners.
In a recent survey by Braun it was shown that 75% of parents explained that “their child's education is an important part of the search for a new home.”
The Joint Center for Housing Studies at Harvard University revealed that there are four main reasons why people are buying a home, all of which have no draw to money.
The reasons are:
1. The best place to raise children and provide them the best education
2. A safe and secure area for the family
3. A location that offers extra space for growing room
4. Increased control of their space
Ask yourself why you want to own a home; what is your reason for owning? What kind of non-financial reasons are at the top of your list? These reasons will help you decide whether you should purchase or not.
2. Do you know where home values are headed?
In a recent Corelogic Home Price Index, it was shown that home values are going to rise by 5.3% over the next year.
How does this affect you?
With home prices increasing, a property that is worth $250,000 today could cost as much as $13,250 more by this time next year. For buyers that means much higher down payment requirements as well as larger monthly payments.
3. Do you know where mortgage rates are headed?
Aside from paying attention to the rising prices of homes, buyers should be considering the ”˜long term cost' of a property, as prices can increase dramatically even with a small shift in mortgage rates.
Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association have all projected increases in mortgage rates over the next year. See the chart below:
Buying a home is a matter of asking yourself the important questions and deciding if now really is the best time for you to buy.
If you want to know more about where the housing market is headed give us a call today at Showcase Realty at 704.997.3794. Looking to gain some more insight in buying, selling and current real estate trends? Don't miss out on great information on our Showcase Realty Blog!
If you're still deciding whether to rent or buy, be sure to read: Should You Rent or Buy? In Both Scenarios, You're Paying a Mortgage.
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