If you're on the fence about buying a home, I get it. Mortgage rates can look a bit intimidating. However, there are two compelling reasons why now might be the right time to dive into homeownership. It's still a great time to buy
Home Values
First, let's talk about home values. The past couple of years have seen some fluctuations in home prices, but don't let that confuse you. Over the long haul, home values have risen consistently. Yes, there was that infamous hiccup around the 2008 housing crash, but otherwise the trend has been steady, with values consistently increasing. This is excellent news for the housing market.
Why is this good news for you as a potential homeowner? Well, as home prices rise and you pay down your mortgage, you start building equity. Over time, this growing equity gives your overall net worth a nice boost.
Increasing Rent
Now, let's talk about the ever-increasing rent. If you've ever felt the pain of your rent going up year after year, you're not alone. Rent prices have been steadily climbing for the past sixty years. However, when you become a homeowner, you can lock in your monthly housing costs and wave goodbye to those frustrating rent hikes. This type of stability can be a complete game-changer.
In the end, it all boils down to the concept that your housing payments are an investment, and you've got a decision to make. Do you want to invest in yourself, or would you rather keep padding your landlord's pockets?
When you choose to become a homeowner, you're investing in your future. When you rent, that money you're spending doesn't come back to you.
So, when you weigh in the consistent rise in home values and the opportunity to escape those never-ending rent increases, homeownership starts to look like a path to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR) puts it:
"If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home."
In a nutshell
Buying a home offers more benefits than renting, even in a market with high mortgage rates. So, if you'd rather avoid the frustration of increasing rents and take advantage of long-term home price appreciation, it might be time to connect and explore your options. Your dream of homeownership could be closer than you think.