If you are on the fence about buying a home in 20175/5/2017
For several years now real estate blogs and sites have been pushing consumers to buy now because interest rates are rising. It has gotten to the point for me that I equate it to "crying wolf". However it is true. We've had amazing low interest rates the last several years. Those rates helped keep our real estate market thriving during and after a tough recession. These low rates have made it possible for more people to become homeowners, and they helped consumers buy more house than anticipated. Interest rates have been historically low between 3-4.5%. We anticipate by the end of the year they will be close to 5% and rising. Keeping Matters Current posted an infographic today on their blog showing with real numbers how the cost of waiting to buy really plays out. The house you would buy today will probably appreciate in price over the next 12 months, and you will have a higher interest rate on your purchase. Check out the link above to see real numbers. The number we really don't like to see is the one that shows how much more you will pay over the life of your loan. When it comes to debt we prefer to pretend that number is an ambiguous blob floating out in space. As I get older and more practical, I realize that number is my child's college fund, my dream home, my Italy vacation, etc... The word on the real estate streets is that this time the rise is really happening. For those of us past a certain age, we aren't scared. When I bought my first home in 2002, my interest rate was 7%. Those before us tell us they walked to school uphill, in the snow, both ways, and paid 16-18% on their homes in the 80s. We survived it! But I guarantee you most of us have taken advantage of this time to buy and refinance all our properties before we see those high rates again!
Now only you know what is best for you and your family! Don't let fear of the future and fear of finances cause you to make a move you aren't ready to make. Most home purchases are motivated by other big life changes: marriage, divorce, growing family, career moves, death, etc... It's up to you to decide if moving fits in to life at this time. How many life changes at once are too many to handle? As your Realtor, I think I'm pretty good at helping my clients deal with their stress. I try to make their real estate transactions as easy as possible. I can think of a few specific friends/clients who I could ask to testify. :) You know who you are! So if you know it's not what's best for you right now, don't let these numbers and predictions make you anxious. Know that a year from now I will still be selling houses, and real estate blogs will still be warning you to buy before it's too late. ;)
So if you are on the fence about moving this summer, here are some questions to answer and think about:
1. Is this a good time financially to move for me personally? Do you either have enough equity in your house to sell, or do you have your down payment saved up? Do you have an emergency stash in your savings? (If you aren't sure talk to a referred lender. A good one will help you determine if you should wait or go for it!)
2. What else is going on in your life? Are things too unsettled or too big to add one more spinning plate? Sometimes you are pushed into a move, but sometimes you have the choice to take your time.
3. How will this move affect my family?
4. Do I have support and encouragement? Do I have an awesome Realtor and team who will guide me through this? (Yes, you do!)
Feel free to call or email me to discuss. I'm a good listener and will give you honest advice.