Whether you are looking to buy a home for the first time, or you are looking to move up to your dream home, there are a few questions that you should ask yourself. Purchasing a home is a big decision, and a large investment, so you want to feel confident in your decision! As your Houston real estate team, we’d like to offer you a few suggestions.
Before making the decision to buy, ask these three questions:
Why are you buying?
This is the most important question of all! Is it to grow a family, to grow roots, to invest in your future, to settle somewhere with good schools, or to have a place to call your own? Once you settle on an answer, it’s important to remind yourself throughout the home-buying process. Whenever you feel anxious or overwhelmed, come back to your answer. Hang it on the fridge or by your desk if it helps! Your answer will keep you grounded and on point.
Where are home values headed?
Now let’s look at the logistics of buying a home right now. When home values are headed upward, it’s a great time to buy, because the longer you wait, the more you might spend! Plus, it’s peace of mind knowing that your house could be worth more when you sell it.
The latest Existing Home Sales Report showed that the median price of homes sold year-over-year was up 4 percent, and that they increased for the 58th month with year-over-year gains. Now is definitely the time to buy!
Where are mortgage rates headed?
The other piece of the financial puzzle is mortgage rates, and where they are headed. If they are increasing, than it’s probable that the longer you wait to buy, the higher your rate will be. This means that you will spend more each month on mortgage payments, and that expense adds up over time.
Mortgage rates have increased slightly over the past year, and real estate experts predict that they will continue increasing over the next year. Predictions have them landing at 4.30 percent in the second quarter of this year, 4.43 percent in the third quarter, 4.53 in the fourth quarter, and 4.63 in the first quarter of 2018.
As you can see, by answering the second two logistical questions now, it is a smart time to purchase a home! The market conditions make it wiser to buy sooner than later. If you have a good reason for wanting to buy, why put it off?
When ready for help with the home-buying process, contact us, your real estate team! We are here and ready to help you achieve all of your goals in the Houston real estate market.