3 Reasons You Should Buy Property Now
“All markets are seeing strong conditions, and home sales are the best they have been in 15 years.”
Lawrence Yun, chief economist
Caleb and I are in the business real estate every day, we hear a variety of questions. The most discussed real estate topics right now seems to be…“home prices are so high” “the market is about to crash” “ wait for prices to go down” “I can’t find a house to buy”. It feels a little like dooms day is all around us. But what we have come to realize is that right now more than ever, there is no time like the present…to buy a home.
The Wilbanks Family
They bought and sold their home with us. It was a smooth process. We received multiple offers on their home and negotiated $10,000 over asking price for a final purchase price. This fincially allowed the Wilbanks to take the step in a new home purchase.
After studying and forecasting where we are headed in the 2022 real estate market and beyond, we feel now is better than any time to buy property…Why?
Appreciation - Home prices are predicted by economists to rise 3%-5% more in appreciation over the next five years. Home prices will not be as cheap as they were prior to the pandemic and prices are expected to keep rising, just a slower pace than we saw in 2021. Experts believe 2022 will start to normalize again. With more housing inventory to hit the market, the intense multiple offers will start to ease,” Yun said. “Home prices will continue to rise but at a slower pace.” The value of your home will either remain stable or most likely increase slightly within the next few years. Even if you feel you overpay slightly to get a home, you are still better off buying a home before interest rates spike.
Affordability - Interest rates are on the rise, currently averaging 3% in our local areas but the Feds are raising rates which is predicted they average rate will be around 4% by the end of 2022. This means for you, your payment on a loan amount of $200,000 will go from approximatley $1200 to $1300, simply due to the 1% increase in interest rates. It will cost MORE to purchase the same home after interest rates increase.
Rent Prices are High - Monthly rental prices continue to increase so much that a mortgage payment, on that same house, would be the same monthly payment or less. Homeowner is ultimately a great way to build wealth. So instead of paying someone else’s mortgage each month, I would highly recommend purchasing and paying toward your own investment. If your monthly rental payment is $1200. That could get you a nice $200,000 home!
I wouldn’t wait for long. This market can seem harsh, but the reality is, buying property is always a good investment. If you have the cash in place for a downpayment and feel you are ready for home ownership, then don’t wait for things to get “better”. There will always be a catch whether it’s low inventory or high interest rates. It's easy to make excuses for why now is not a good time. But now is a great time to start ownership and growing equity, no time like the present!
The West Family
This sweet couple moved from the west coast as we got to represent them as a buyer. We looked at only a few homes, they were able to negotiate down the price of a home that had been on the market for a few months. With non refundable earnest money and a daily rent amount, we negotiated early occupancy which made the big move cross country a little easier.