For those that may not know, my personal home is currently for sale. As someone who has been licensed in real estate for almost five years, and currently selling the first home I ever bought, I find myself asking all the typical questions of a seller. During the season change from spring/summer into fall/winter months, should I keep my house on the market? Should I wait? I’d love to buy, but should I see if prices decline any further? Will rates go any lower?
I ended up convincing my own brain on two accounts: yes now is the time to sell! And yes, now is the time to buy! Tomorrow I will share what I think are some very pivotal market trends that show why now is the time to sell your home, but first I will start off with why now is the time to buy.
First off, if you find a house that you love, and you’re ready to buy, then buy! The top 4 reasons people want to buy a home haven’t changed for decades and they are:
- They want a place to raise a family and that provides access to great education
- That want a house they can call home, that is ALL theirs
- They want the space and freedom expand and stretch without being cramped
- They want to do what they may with said house versus a landlord setting limits and restrictions
After someone has made any of the four emotional decisions to buy a house, it has to make sense financially. Even though the housing market has taken a dip in the last 5 years, if you look back housing prices are still up since to 2000. Currently you can’t flip a house to make a quick buck, but you can buy a house and know that you’re making a good investment in the long run. That leads me to share that while not only are housing prices down, but mortgage rates have not been this low since the mid 1950’s. My parents were in diapers it was that long ago. That’s a big deal.
Buyers need to realize that it’s the cost of the house, not the price of the house that is the factor. The cost of housing is the rent that will in turn rise with inflation over the next 30 years and that’s money that you won’t ever get back. The median monthly mortgage is now, more or less, the same as the average rental payment. However at the end of 30 years, you get your money back and then some, depending on the rate appreciation, (which by the way the average rate is 3.6% but is currently sitting at 1%.) Plus you get all the benefits of home ownership – tax benefits, benefits to your family and most importantly, benefits to your lifestyle and the freedom to make living choices that are best for you.
If you’ve been thinking about buying, now is the time to do it. If you have any questions on this blog or any other post I’ve made, please never hesitate to ask because Kelly Rose Knows!