If you’re thinking of buying a home in the next three months or so, I’m going to give you three questions you need to ask yourself before you dive into the home search.1. Why am I buying in the first place? This is the most important question. For most people, the reason has nothing to do with finances whatsoever. People want a safe place to raise their kids. They want more space for their family, and they want control of the space that they have.
Where are home values headed? When looking at future values, the Home Prices Expectation Survey provides a fair assessment. Every quarter, a nationwide panel of economists and real estate experts make projections for the next five years. Home values will appreciate by 4% through 2015. Even the more conservative experts project an accumulative appreciation of 15.1% by 2019.
Where are mortgage rates headed? A buyer must be concerned about more than just home price. The long-term cost of a home could be dramatically impacted by an increase in mortgage rates. Mortgage rates will increase by one percentage point over the next twelve months, so keep that in mind.
The bottom line is that only you and your family can determine the best time to buy a home. These three questions will guide you with that decision. If you have any questions for me, give me a call or send me an email. I’d be happy to help you.