Thinking about buying a house now? Even though mortgage rates may seem a bit high, there are two good reasons why it’s still a good time to become a homeowner.
Home Values Appreciate over Time
Many people are confused about what’s been happening with home prices in the last two years. Although they went down a bit in late 2022, this year they’ve been increasing at a steadier rate, which is great for the housing market.
It’s natural to be concerned when prices change rapidly in a year or two, but history has shown that home values generally go up over the long term (refer to the graph below).
By analyzing data from the Federal Reserve spanning the last 60 years, it’s evident that the general pattern has been a consistent upward climb in home prices. While there was a significant deviation during the housing crash of 2008, causing prices to temporarily break from the norm, the overall trend has been a steady increase in home values.
This consistent increase in home values provides a compelling reason why buying a home might be a more logical choice than renting. As home prices go up and you make mortgage payments, you’re gradually building equity. Over time, this growing equity contributes to an improvement in your overall net worth.
Rent Keeps Going Up Through the Years
Yet another rationale to ponder buying a home rather than renting is the perpetual rise in rent costs. If you’ve ever experienced the burden of annual rent increases, you’re certainly not alone. This is because rent prices have consistently increased over the past sixty years (refer to the graph below):
When you buy a home, you can set a fixed monthly housing cost and say goodbye to those bothersome rent increases. This stability can be a real game-changer.
In the end, it all comes down to this: your housing payments are an investment, and you have a choice to make. Do you want to invest in yourself or in your landlord? By becoming a homeowner, you’re investing in your own future. When you rent, that money doesn’t come back to you.When you consider the consistent rise in home values and the chance to escape never-ending rent increases, homeownership can lead to financial security.
As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), says, “If a homebuyer is financially stable, able to manage monthly mortgage costs, and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”
Bottom Line
In the grand scheme of things, purchasing a home brings more advantages than renting, even in the face of high mortgage rates. If you’re looking to steer clear of rising rents and tap into the long-term growth in home values, let’s get in touch to explore your options.
Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area.
Mon, 30 Oct 2023 22:48:31 +0000
