Are you wondering if now is the right time to buy a home? Despite mortgage rates currently being higher than they have been in several years (remember the days of 3%!), I'm here to tell you that there are compelling reasons why this remains an opportune moment to invest in one of the best investments you could make – buying a home. Most real estate experts agree that now is the time to buy. You can check out this recent article on InvestorPlace for more insights: Link to Article
Here are some compelling reasons they offer in favor of seizing this window of opportunity:
- Higher Mortgage Rates, But a Bright Outlook: While mortgage rates are currently higher than they have been recently, it's important to note that they are not likely to return to the exceptionally low levels of the past. However, what remains constant is the ability to refinance when rates eventually decrease to the 5% or even 6% mark. You can always refinance when rates go down, but you can't refinance the purchase price of a home. This makes now the perfect time to buy before increased competition drives prices higher.
- Wealth Accumulation Through Equity: Homeownership extends beyond just providing a place to reside; it's one of the best investments you could possibly make. It's fantastic for your portfolio, as it offers a stable and appreciating asset. Experts suggest that supply and demand conditions are favorable enough to lead to rising home price appreciation for the next 10 to 15 years.
- Stability and Security: The sense of stability and security that comes with owning a home far surpasses what renting can offer. You gain control over your living space, the freedom to customize it to your liking, and the assurance of a stable home life unaffected by sudden landlord decisions. This stability is particularly invaluable during uncertain times, providing a reliable anchor in your life.
- Tax Advantages: Homeownership frequently comes with an array of tax benefits. Mortgage interest and property taxes are often tax-deductible, which can translate into substantial savings during tax season. It's advisable to consult with a tax professional to gain a thorough understanding of how homeownership can positively influence your financial outlook.
- Potential for Appreciation: Historical data demonstrates that properties tend to appreciate in value over the long term. By purchasing a home now, you position yourself to reap the rewards of potential future appreciation. When the time comes to relocate or sell, you might discover that your property has significantly increased in value, providing a substantial return on your initial investment.
- Expert Insights: No Housing Market Crash: To address lingering concerns of naysayers and doomsayers, let's heed the insights of experts like Luke Lango from Investor Place, who recently discussed his bullish outlook on the housing market. He emphasized that speculation about a housing market crash has been ongoing for months, but there's no crash in sight. In fact, the market is reaccelerating.
For example, median prices for existing home sales rose in July 2023 for the first time in five months. “Whatever housing recession there was is over,” Lango said. In his words:
“There’s no existing home sales inventory. The only inventory is on the new home side. Builders were hesitant to build in 2022 because everyone was talking about a housing market recession, so they didn’t build in 2022. They also had labor shortages and product shortages, lumber shortages. Now they’re just starting to build again here in 2023. … Demand for homes is durable. It’ll sway a little bit here and there based on economic swings and interest rates, but it’s pretty durable. [Right now] supply is very low, and based on our analysis, it is going to take a very, very, very long time to normalize supply conditions in the housing market. And until those conditions normalize, home prices are going to remain elevated.”
In Conclusion
In summary, if you're contemplating whether now is the right time to buy a home, the resounding consensus among real estate experts leaves little room for doubt: it's an unparalleled opportunity you should seize. While mortgage rates may currently be high, there are solid reasons to move forward with your homeownership goals. With the potential for wealth accumulation through equity and its benefits for your portfolio and retirement, homeownership stands out as one of the best investments you could possibly make. As your dedicated local real estate expert, I'm here to guide you through the process, help you locate your dream home, and ensure that you make a sound investment decision. Don't hesitate any longer; seize the moment and embark on your homeownership journey today!
