4 Reasons Why Now Is the Best Time to Buy A Home
April 28, 2021
“Buying a home is a great investment. Why? Because you cannot live in a stock certificate. You cannot live in a mutual fund.” – Oprah Winfrey
For many of us, buying a home is the biggest dream. It is something that we all yearn for. 2020 might have been a tough year for all of us, but 2021 is the year to make the move and fulfil the dream of owning a home. If you are wondering why then we have listed below some of the major reasons that make ‘NOW’ the best time to buy a home.
Reasons To Buy A Home Now
1) Lower Interest Rates
If we believe what the experts are saying, mortgage rates are going to remain in the lower range for 2021. Prediction from the Mortgage Bankers Association states that in the first half of the year, the mortgage rates are going to be at 3.1% average for 30-year loans. Whereas Fannie May suggests it go even down, and remain at 2.8%. It also projects that there’s going to be a 3% average rate for the entire year.
This means a number of benefits for people like you who are looking to buy a home. For instance, lower mortgage rates mean you can expand your budget. Or, you can buy a higher-priced home, or even reduce the monthly payment that comes from the home loan.
2) Home Prices Will Rise In The Future
The second important reason that makes now the best time to buy a house is the upward climb of home prices in the coming times. If experts like Freddie Mac, Fannie Mae, and the Mortgage Bankers Association are to be believed, we are going to see a 3.1% increase in the prices of existing homes in the near future.
What this means is that you will have to pay a higher price for the same property in the future than you will have to if you plan to buy it right now. If you don’t want that to happen, you must start your planning now.
3) Plenty Of Options To Choose From
Housing starts have already picked their pace post the COVID-19 impact. A long list of newly constructed properties has already hit the market, and plenty more are going to come in the near future. This makes it all the more exciting, as you have more home options to choose from.
If predictions from the Mortgage Bankers Association are to be believed, we are going to see the strongest single-family construction in the real estate market as compared to what we have seen in the last two years, at least.
4) You Have Some Great Technology By Your Side
One of the upsides of the 2020 pandemic has been the evolution of technology in the real estate market. Real estate agents have become more tech-savvy, relying on modern options like Virtual home tours and Zoom meetings to make the process easier and hassle-free for home buyers.
In fact, this has made the entire process of home search a lot more efficient and effective for potential home buyers. If you want to make the most of these changes, then now is the best time to begin your search for a home, and take advantage of these technological advancements.
Before You Plan To Buy
An important piece of advice that we would like to share with everyone out there reading this post is that before you plan to buy your dream home, make sure you have your finances organized and planned.
The real estate market right now is a seller’s market. What this means is that there are more buyers available in the market than there are homes for sale. It would be heartbreaking to begin your search, find your dream home only to know that your credit score has changed recently, and you cannot afford the home.
Therefore, it is important that do all the financial planning and get all your financial paperwork organized.
For instance, consider your sources of regular income for the present and the future, sort your household budget, how much down payment can you make, and get to know the loan amount you can get based on your income and credit score (you can go to any mortgage lender with your details to get information about the same).
2020 saw credit availability being 30% under the pre-pandemic levels. What this meant was that lenders had tightened their standards considering the economic fallout that people were going through during the pandemic. 2021 has already seen lenders
loosening their credit requirements, giving home buyers one more reason to plan their home purchase now.
Get a preapproval loan, if you are eligible, from the mortgage lender that’s offering you the best deal. P.S. it’s always the best idea to go loan surfing, and see what offers you can get.
Once all that has been sorted, you can eventually fulfil your dream to buy a home, taking advantage of the current market conditions.
Get in touch with an expert
It is also highly recommended that you take the help of an experienced real estate agent who can help you not only find the best home to fit your requirement, but also make sure that you get the best deal.
For instance, you can choose to go to a Negotiator Recognized Partner, who will negotiate on your behalf, assist you in buying a home and ensure that you end up getting maximum benefits while buying a home. These professionals bring with them years of experience and expertise, and the trust of being a loyal companion to make your home buying a smooth experience.
Here’s hoping that all this information will help you make up your mind to buy your dream home.
Happy home hunting!