Spring is in full gear, is it time for you to look to buy a house? Absolutely, although Spring may just be an excuse. Whether you’re currently renting, or just looking for a better home for your needs, here are four reasons to not wait to look for your new home regardless of the weather. The time to buy is now.
You have to live somewhere, so why pay rent? A homeowner’s home is probably his biggest asset. If you’re a renter, rent is usually your biggest expense. Thus, unless you move frequently, or have some other reason, it’s better to buy a house. It’s guaranteed that your rent money is lost, but a mortgage, you’re paying into an asset you will own. Some see mortgage payments as a form of “forced savings.” The savings are in the form of equity, an inflation proof asset. The question is really not why should you buy, but why not? The main reason would be lack of money and/or credit.
House Prices are Rising. In the long term, real estate usually goes up and is inflation proof; real estate has an intrinsic value. However the current market predicts that houses will rise higher than inflation, but because the intrinsic value of the real estate is going up, not because real estate will be a victim of inflation. According to one study, “Steady turnover will drive home prices to rise at almost double the current rate of expected underlying consumer inflation and wages over the next few years, according to the survey conducted Feb 16-23.”
In general, real estate usually goes up in value in the long run. Every credible report indicates home prices will go up. Many factors contribute to this. One is that there is a decrease in houses being built. In other words, a lack of supply.
Interest rates will rise. Just as the price of homes will go up, so will the price of borrowing. Interest rates are at historic lows right now. Here Forbes magazine comments that it believes that interests rates rising are not only inevitable, a hike is “normal” as present rates are historically low. Also, the hike will, relatively speaking, be manageable.
Other commentators hold that rates will go up, and that this will be good for the housing market from the sellers side, as it will spur more buying before the rates increase.
No reason to wait. As both home prices and interest rates go up, is there a reason not to buy? You have to live somewhere. There is no compelling reason to wait if you’re renting. If you already have a home and are happy, then you may not want to buy. However, if you already know you want to buy, there are no advantages to waiting considering the climate we’re in.
If the right thing for you and your family is to purchase a home, then do so as soon as possible.
For over 30 years, the Damron name has represented the highest level of customer care, area expertise, and industry knowledge in the San Marcos, Texas real estate market.