Are you thinking of buying a home? If so, this spring is a great time to make your purchase. Here are the top motivators this season that should encourage you to start the homebuying process sooner rather than later.
1. Homeownership Has Many Perks
Homeownership is the American dream – not just because it has tangible financial benefits, but because it also has the power to change lives.
The security, stability, and success homeowners feel have far-reaching impacts, especially in a time like this. Over the past two years, the health crisis has made having a safe space to call home more important than ever before. If the pandemic has changed what you’re looking for, homeownership may be able to deliver the perks you want, financially and emotionally.
2. More Homes Are Expected To Enter the Market This Spring
With more active buyers in the market than there are houses for sale, the homebuying process may take more time and effort than usual. But the good news is, spring is typically a highly active season in the real estate market when more sellers list their houses.
If you begin your search now and work with a trusted real estate advisor, you’ll be in a great spot to benefit from those additional options when your dream home hits the market.
Did you know that close to 25% of all sales in Palo Alto sell without ever hitting the open market?
3. Home Prices and Mortgage Rates Are Climbing
Last year, the housing market saw a sharp increase in home price appreciation due to the imbalance of supply and demand. While competitive buyers are expected to keep home prices climbing, industry leaders say the pace of appreciation should be milder in 2022. And as this year kicked off, so did a rise in both inflation and mortgage rates. With expert projections indicating prices and mortgage rates will keep rising this year, this means it will cost more to buy a home if you wait.
While everyone moves through the homebuying process at a different pace, it’s more important than ever to put your plans in place and begin working with a real estate advisor. If you’re thinking about buying a home over the next year or two, purchasing sooner rather than later may be your most affordable option.
4. Rents Are Rising
Mortgage rates and home prices aren’t the only things on the rise either. Census data also shows the median monthly rent continues to go up year after year (see chart below). To escape rising rents, consider purchasing a home so you can lock in your monthly mortgage payment and avoid future increases. Even though the number of homes available for sale is low, homeownership is a much more stable long-term investment. The search is worthwhile, and the purchase will help grow your net worth as home values appreciate.