Although interest rates are rising and salty investors say a recession is on the horizon, it’s still a great time to buy a house. What? That’s right. No matter what rates are doing, there are a few fundamentals of homeownership that can weather any storm.
Rates May Continue to Rise
Nobody likes to enter an equity market just before the peak, and you don’t want to do that with interest rates, either. But, if the past few months are any indication, now is still the best time because things may be more expensive later. Although these aren’t your parent’s interest rates of the low threes, they are certainly not your grandparent’s interest rates of the low twenties. Locking at a lower rate for 15 or 30 years could have you smiling all the way to the bank.
Real Estate is a Real Asset
Today’s market is nothing like the pre-2008 market, where people who could not afford a loan at any rate were securing homes well beyond their means. Today’s homebuyers can still rely on having an asset that appreciates, but more importantly, a home they can enjoy. Finding the right real estate agent is critical because avoiding overpaying buoys you from being underwater in the home value versus mortgage equation.
A CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of over $3.6 trillion since the second quarter of 2021, a gain of 27.8% year over year. Despite current market shifts, this isn’t 2008.
Falling Prices
There’s quite a consensus that the recent spike in home prices was part of the side-effects of the global pandemic. Now that the fever has chilled, prices are sinking into reality. Lower prices and slowly rising interest rates mean less competition for homes and lower prices. If you began your home search two years ago, you would likely see some of the dream homes on your list for sale at significant discounts. So find the right realtor and get into your dream home today!
It’s still a great time to buy a house, so contact Mister Frisco and Globus Realty. Don’t wait on your forever home. Live happily today!
