When considering buying a home there are many factors that come into play that are both financial and emotional. It’s also probably one of the largest, if not the biggest, financial decisions you will make in your life. You will want to make an educated decision and weigh all the pros and cons for yourself when thinking to buy a home now or wait in Seattle. This article will show you five great reasons to consider buying a home today in Seattle instead of waiting.
- Prices Will Continue to Rise – Buy a home now or wait?
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 10.5% (most pessimistic) and 25.5% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years.mSo when you ask yourself should you buy a home now or wait, remember this and know waiting nomlonger makes sense. We know single family homes have become quite expensive in Seattle but have you considered that a Condo makes a great first home when asking yourself buy a home now or wait?
- Mortgage Interest Rates Are Projected to Increase – Buy a home now or wait?
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have started to inch up, most experts predict that they will begin to rise even more over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by this time next year. That becomes quite costly over the length of a mortgage so keep that in mind when asking buy a home now or wait.
An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home. Here is a good rule of thumb: For every 1% increase of interest rate it will cost you 10% in buying power. So if you are thinking of buying a $300,000 home and interest rates go up 1% you would have to drop the price to $270,000 for the same payment. That is a $30,000 loss of buying power.
- Either Way you are Paying a Mortgage – Buy a home now or wait?
As a paper from the Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.” How does that factor into your decision to buy a home now or wait?
- It’s Time to Move On with Your Life – Buy a home now or wait?
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you buy a home now or wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.
- Rents will continue to rise. – Buy a home now or wait?
Don’t think that home prices are the only thing that will rise this year. Vacancy is way below the standard in the Seattle area. Landlords are pushing their rents upward to keep up with the demand. Even though building has increased for rentals it is nowhere near the supply to keep rents stable.
- Buying your first home is an emotional decision– “Home is where the heart is.”
A home represents your personal tastes and provides a haven of stability and security for both you and your loved ones. We buy homes for other factors besides money. Provides a pride of home ownership, the American Dream, a place to call home, have community involvement and feel settled, because it’s yours.
Bottom Line – Buy a home now or wait?
If you are ready, willing and of course able to buy, now may be the time. Take your time and gather the information needed to make the right decision for you but when thinking to buy a home now or wait, just keep in mind the rising costs as well and don’t wait too long that you miss out on making the most of your money and investment.
Other must know info after reviewing info to buy a home now or wait:
- Search homes for sale in nearby Phinney Ridge, Green Lake & Fremont
- Top Tips to Find the Perfect Home in Seattle
- How to Avoid a Seattle Bidding War
Wondering how to go about buying your home in Seattle WA? It’s important you understand first whether you should buy a home now or wait but then how to truly find the home that’s perfect for you by talking with an agent who has been working in the area for over 20 years. The information above should be helpful but if you haven’t hired a top real estate agent in Seattle WA yet to assist you with finding your home, contact me, and I’d love to discuss your real estate needs further!
Dave Hanson Home Team – Exceeding Expectations – 206.686.7525