Are you considering buying a home right now? If you’re a first-time buyer or are thinking about making your first mortgage, take note of these current housing trends.
For those who are hoping to buy a home, but can’t afford a mortgage in the current market, should you keep waiting? That depends. If you currently have a stable credit score (below 650) and don’t have children or other dependents,Silver Firs Realtors says the answer is maybe yes. The key is to consider whether your income can support the amount of monthly payments on a home loan and what that would mean for your future.
Let's begin by defining what is “ inflation”? It is basically the rate at which prices rise over a given time period. It is a broad measure such as the cumulative rise in the prices of goods and services purchased or the cost of living in a country
Looking at real estate listings can be entertaining. From the comfort of your couch, you can scroll through photos of perfect homes in beautiful neighborhoods and imagine how it’ll feel to unload your groceries into that brand new stainless side-by-side fridge.
“With inflation rising so aggressively and the fact that people’s salaries and weekly income are not rising at the same rate, we end up with less discretionary money to spend each month,” said George Ratiu, manager of economic research at Realtor.com.
The good news is that there are many reasons to consider buying a home during this time and the bad news is that you can’t control how much inflation or interest rates are going to change.
The biggest reason for the link between rising inflation and falling housing prices isn't due to the inflation itself - instead, it's the reaction to the inflation. No government is happy to sit back and watch inflation destroy its country, so the Fed increased its fund rate recently.
When the fund's rate is higher, it affects banks, causing interest rates to rise and compensate, including mortgage rates.
In a nutshell, Silver Firs Realtors suggest your home search doesn’t have to go on hold because of rising inflation or higher mortgage rates. There’s more to consider when it comes to why you want to buy a home right now like addressing your changing needs and so much more.
In the real economy, Silver Firs Top Real Estate Agents know that there are a lot more factors that affect house prices and the correlation is not as prominent as in our example. One of the other major factors causing house prices to increase is interest rates.
This means that if you have a low interest rate on your mortgage and you find yourself with a property worth less than what you owe on it, you will have to pay off some or all of your loan before selling your home. This is because lenders need cash flow from their homes in order to cover their costs (interest payments).
When it comes to buying a home, there are certain things you should do before you start looking. But first, let’s talk about why you should buy a home in the first place.
Why Should You Buy A Home?
A home is a major investment that provides stability and security for decades to come. The decision to buy a home should be based on your personal needs and desires, as well as the current state of the market.
If you’re not sure if now is the right time to buy, Silver Firs top real estate agents site some reasons why owning a home makes sense:
Buying soon can also help consumers avoid skyrocketing rent prices, which are rising faster than home prices in many places.
If you haven’t gone through the mortgage pre-approval process, you could be in for a rude awakening when your dream home is of your price range. You can save yourself that heartache by researching your local market and getting your buying power sorted out before
The cost of living in any given area depends on many factors — including the number of people who live there, their income levels and whether they own property in their community or are commuting daily from another part of town. But as long as property values rise year after year, there’s one thing we can all agree on: Buying a house is an investment!
While homeownership is not for everyone, there are a number of important considerations that need to be made in order to make the right decision. For first time buyers, these considerations may be even more significant. But above all else, you should make sure you have your priorities in line when making these decisions. Do you have a long term view? Are you wary of the potential risks that come with homeownership? If you can answer questions like these, you will have taken an important step towards making the right choice for you and your family.
In short, this is the best time to buy a house if you can afford to, but high inflation can make that goal even harder to achieve. Expand your budget, look at more houses and try to get a good deal. If you can address all these concerns, buying a home in an inflationary economy may be right for you right now.
To help you weigh things and decide carefully, Darren and Gwen Munson , Silver Firs Top rated real estate agents,are here to help . We are the best in SIlver Firs ,not to mention we have the expertise and dedication in helping you find your dream house. Call us at 425-338 9400 or visit our website at www.munsonhomes.com for more information.
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