What buyers in today’s housing market should be considering.

The overheated housing market has begun to cool down as monthly mortgage payments have risen dramatically since the beginning of the year. This means that some people have been priced out of the market. Many are wondering if now is the time to buy, but this rise in borrowing costs shows no signs of letting up soon. Anyone thinking about buying a home today should ask themselves two questions: 

1. Where are home prices heading? If you look at what experts are projecting for home prices in 2023, they’re forecasting home price appreciation to be around 2%. While it’s true that some are calling for depreciation, most are predicting the opposite. 

2. Where are interest rates heading? While most mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.

“It’s important to work with someone who understands how mortgage rates impact your monthly payment.”

As rates go up, the amount you can afford to borrow decreases, and that may mean you have to look at homes at a different price point than before. That’s why it’s important to work with a real estate agent like myself who understands how mortgage rates impact your monthly payment. Also, if you’re waiting for mortgage rates to drop, you may be waiting for a while, as the Federal Reserve is working to get inflation under control. 

The alternative to buying is renting, but rental rates are also increasing. That may mean buying a home makes more sense than renting. Rental rates rose at their highest pace in nearly four decades. Whether you rent or buy, you’re going to be paying more. The difference is, with homeownership, you’re gaining equity over time. That will help your net worth grow. 

Each person’s situation is unique. Let’s talk about your options and let’s see which direction you need to go to make the best decision for you and your family. Call or email me. I look forward to hearing from you.