Some people will opt to postpone home ownership until the best rates are available, they have more money in the bank or there is a surge in inventory, but in an ever-shifting market, it may not be the best decision to delay such a sizable investment. If you’re wondering whether or not you should put off investing in a home, here are some reasons you may want to consult with a mortgage broker and start searching to buy a home today.
Interest Rates Fluctuate
Interest rates have a tremendous impact on a buyer’s purchase power so it is important to take rates into consideration when making a decision to buy now or wait. According to an industry expert of 17 years, Michelle Mollura, Regional Sales Manager at RPM Mortgage in Palos Verdes Estates, "Interest rates are still at a historic low today. If you look back over the last 20 years, there are only two other years (2012 and 2016) that had rates lower than today’s rates. So although we have seen them increase over the last 6 months, it is still a very good time to lock in very low interest rates on your home financing. Rates are projected to continue to rise according to industry experts. They predict at least one more rate increase this year.".
Investing Early Reaps Financial Rewards
It may seem savvy to wait for home prices to dip, but there is no guarantee if, when or how much the market will shift. In the meantime, you may be spending a lot of your monthly income on rent, which is paying someone else’s mortgage and giving away your opportunity to earn equity from home appreciation. If home ownership is one of your goals in life, investing in your home is a strategic way to gaining equity for the future, especially when you plan on living in an area for the mid to long term. There are many creative solutions for lending in 2017. Consulting a lender about your options could open doors you never knew existed.
The Market Continues to Increase
When it comes to the market, there may always be a time coming when you think you’ll get a better deal, but there’s also the chance to regret not buying in years earlier. In Q2 2007, the average single family home in Manhattan Beach sold for $2,003,000. Ten years later, the average sold price was $2,9967,000, which is a 48% increase in value. While many may feel priced out of the communities they love, there are deals to be found for buyers willing to make some concessions and prepared with financing to make offers immediately when they find the right opportunity.
If you are ready to consider your options to buy, contact Liz to discuss your thoughts about getting into the real estate market today.