With all of the ups and down the housing market has seen this year, you may be thinking where does it stand now and when should I make a move? Although home prices are higher, buyers have many new advantages when getting into a mortgage. Read on to find out why now is the time to strike.
“If you plan on owning for at least ten years that’s enough time to weather any storm that comes your way in the market.”
Experts expect home prices to continue rising between 5-10% next year. Low interest rates may also begin to increase, adding to buyer costs. With all of this in mind you may be wondering would I be better off waiting to buy? Real Estate experts say waiting for prices to come down is not likely to benefit potential home buyers. With rent prices skyrocketing for decades, Homebuyers can lock in a set monthly mortgage payment for 15-30 years and begin to grow their equity. By making consistent monthly payments homeownership helps to build your wealth. Additionally, owning a home gives you greater flexibility than renting. Homeowners have more flexibility to decorate their space, renovate, or even rent out a spare room or ADU for extra income.
Waiting could cost you
Additionally, now interest rates are at an all-time low for buyers. If you’re looking for a house that you plan to live in for at least 7-10 years now is the time to jump in. Prices are higher right now but you won’t be able to afford nearly as much space when the interest rates go up. If you plan on owning for at least ten years that’s enough time to weather any storm that comes your way in the market.
Increased Housing Supply
The shortage of available housing inventory is the major reason for the skyrise in appreciation we’ve seen in the last two years. Fortunately, things are looking up and the number of homes available for sale is expected to increase. According to realtor.com, you can expect to see more new listings come to market the week of October 3. The findings estimate we’ll see roughly 17.6% more homes available than we saw at the start of the year.
Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still expected to be greater than the annual average of 4.1% over the last 25 years. If you’re thinking of buying, consider buying now as prices are forecast to continue increasing through 2022.
It’s still important to shop savvy and manage expectations. In today’s market, look for homes under budget, further out from the city, or consider downsizing. Interestingly, the Downtown Portland condo market is the one place where it is a buyers market right now.
Right now, anything you can do to make your offer stand out is a good move. Creating an irresistible offer and adding in personal touch is key, It may even be a good idea to write a personal introductory letter to the seller.
If you’re in the market to buy a home, stick with it. There are new listings becoming available every day. If you’re thinking of selling your house, you may want to list your home before this additional competition comes to market. By making consistent monthly payments homeownership helps to build your wealth. And owning a home gives you greater flexibility than renting.
If you’re ready to take advantage of the perks of homeownership, get in touch today to explore your options!
Published on 2021-10-03 21:20:04