Many potential homeowners are plagued by the question, “Should I buy now?” It’s an understandable question and one we hear a lot at BestMichiganHouses.com.
The truth is that oftentimes, the market doesn’t tell us when it’s time to move, our life circumstances do. Maybe your family is growing or maybe you’re sick of your long commute. Whatever the reason, when it’s time, it’s time. But that doesn’t mean we can’t make a well-informed decision.
Where are Interest Rates Headed?
It really all boils down to interest rates. The rate you pay has a direct impact on your monthly mortgage payment – meaning the higher your rate, the more you’ll pay. If you’re llike most families, your mortgage payment is one of the largest chunks of your budget.
As interest rates climb, you may find that you can no longer afford that house you wanted and could have purchased. The good news is, although they’re rising, mortgage rates are still at a historic low.
In our current market, the difference a couple months makes can be huge. Buy now to secure our still-low mortgage interest rates before it’s too late.
Where are Home Prices Headed?
Homes are expensive. And in this market, they’re only getting costlier. Home prices are expected to rise just over 5% next year. The bright side to buying in this last quarter of 2018? Fall and winter are the least popular times to buy a home, meaning demand is at its lowest and buyers have more bargaining power.
Think renting might be the better option? Think again. The price of rentals generally goes up with the value of homes. In fact, rent prices are the highest they’ve been in 30 years. So whose mortgage do you want to pay? Yours or your landlord’s?
If you’re interested in buying a home, start browsing Southeast Michigan homes for sale here.
Other Factors To Consider
If rising interest rates and home prices sound scary, not to worry. There are many other factors to consider when deciding to buy a home.
- You’ve found your dream home – When you find the home that’s meant for you, you just know it. Don’t let the opportunity pass you by because of a fickle market. You’ve got to jump on it!
- There’s no crystal ball – You could wait for prices to come down, but you may be sorely disappointed. Forecasts show interest rates are still on the rise with no indication of slowing down.
- Personal reasons – Maybe great schools are a priority and your kids are nearly school aged. Or maybe you just want to paint the walls the color of your choice. Ultimately the only one who can say when it’s time to buy is you.
The Bottom Line
Rising interest rates and home prices make jumping into the housing market a scary prospect. We understand. If you’d like to speak with a professional real estate agent about whether or not you’re ready, get in touch. No pressure. No strings. Just honest answers to your real estate questions.