The home buying and selling season is almost here. How can you know if it’s the best time for you to buy a house?
You’ve probably noticed an increase in radio and TV advertising telling you now is the best time to either sell or buy and who is the best, etc. Nothing new here as this is what typically happens this time of year. If you are thinking about buying a house right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home.
Ask the right questions if you’re going to find the right answers. Sounds easy but in reality it’s not and it requires thought.
In our opinion, there are three questions you should ask before purchasing in today’s market:
1. Why am I buying a house in the first place?
This truly is the most important question to answer. Did you know that for most people finances actually have little to do with it?
Forget the finances for a minute. Why did you even begin to consider purchasing a home? A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money but is motivated by these factors:
- A good place to raise children and for them to get a good education
- A place where you and your family feel safe-See our post on The Safest Places to Live
- More space for you and your family
- Control of the space
What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
2. Where are home values headed?
Pulsenomics is an independent economics research and consulting firm that delivers product strategy and marketing solutions for corporate and institutional clients. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. The report is called the “Home Price Expectation Survey”.
Here is what the experts projected in the latest survey:
- Home values will appreciate by 4% in 2015.
- The cumulative appreciation will be 23.5% by 2019.
- Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 15.1% by 2019.
3. Where are mortgage interest rates headed?
Notice how just a slight increase in mortgage interest rates impacts a buyer’s monthly payment.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.
Only you and your family can know for certain the right time to purchase a home. Answering these questions will help you make that decision. One great tool to look into is our Doorsteps program. This is an Interactive Step-by-Step Guide that will prompt you with great questions and help you discover your own answers. Watch Our Video