With rising prices and dwindling inventory and frequent bidding wars, you might think right now isn’t a good time to buy a house. But it very well may be. Despite all the intimidating real estate market news, there are still some encouraging things going on. Interest rates, for example, are still very low, and there’s actually more inventory than it seems at first glance. So let’s dig a little deeper and see why Realty Done thinks you should buy a house right now in Broadview Heights.
1. Low Mortgage Interest Rates
Historically low-interest rates definitely make right now a good time to buy a house in Broadview Heights. Realty Done and nearly everyone else agrees that home buyers should take advantage of these rates before they go up.
“If you purchase a home right now, you will be paying less to borrow more money . . . Wells Fargo is offering 2.875% on a 30-year mortgage, and . . . the national average is around 2.838%. . . . [I]n 1981 that figure was 18% – and just twenty years ago it was around 7%.”
Although rates have been dropping over the past several years, “no one expects rates to stay this low forever.” In fact, many industry experts expect an increase (maybe even fairly steep) in interest rates over the coming 12 months. “Even a 1% increase over 30 years could mean tens of thousands of dollars go to your mortgage lender rather than into your kid’s college fund or your retirement accounts.”
2. The Market Won’t Crash
On the face of it, there seem to be some similarities between what’s going on in the real estate market now and what happened during the last crash and sub-prime debacle. And because of those apparent similarities, many potential home buyers are waiting for the market to crash – and for prices to drop dramatically. But that’s not likely to happen anytime soon if at all.
Yes, home prices did take a nosedive before the last crash, but a different set of conditions were obtained in the market than those we see now. For one thing, prices rose for a different reason – primarily because lenders were granting high-risk mortgages to buyers with poor credit. More people were buying homes, with the result that prices were driven up. There came a point when many couldn’t make their mortgage payments, a bunch of foreclosures hit the market, and prices were dragged down.
That’s not, however, what is happening today, so that kind of crash isn’t likely. Home prices have been rising and look to continue that trend into the future. And that’s exactly why Realty Done thinks you should buy a house right now in Broadview Heights: to get in before you get priced out of the market.
3. There ARE Plenty of Houses for Sale
A common thread running through most discussions about real estate is that inventory is painfully low, that there are just too few houses to meet the demand. That’s true in part, but there are in fact houses to buy, which makes now a good time to buy a house in Broadview Heights.
Yes, there is a housing shortage, but “the number of homes for sale is increasing, which means more choice for potential buyers. More choice is a good thing. Buyers can be picky about finishes and features that they would have likely been stuck with if they bought a home just a few years ago. Now, real estate agents can find the perfect house for their clients—because there are a lot more houses to choose from.”
Still, there’s no getting around the fact that although the number of houses for sale is increasing, there remains a shortage. Your best bet, then, to find the house you want is to work with a Broadview Heights agent. To discover more, just call (440) 628-1321.
4. The Potential for Fast (And Possibly Substantial) Equity
Another reason the folks at Realty Donevthink you should buy a house right now in Broadview Heights is that, with rising home prices, you have the potential to build equity fast. If you buy a house now and prices continue to increase at current rates, your home will be worth much more in a short period of time.
“Prices have risen over 15% in the last year, giving homeowners — even newly minted ones — serious profits when they decide to sell. Buying now would give you a chance to capitalize on this growth and really build up your equity fast.”
Of course, the rate of price increases (or whether they increase at all) varies from market to market. So be sure to consult your [market-city] agent at (440) 628-1321 before taking the plunge.
5. Owning Still Better Than Renting (Usually)
If you’re currently renting, right now just might be a good time to buy a house in Broadview Heights because, more times than not, owning your own home beats renting. There are two main reasons owning is better:
- Your monthly payments don’t change
- You’re building equity and wealth.
As a renter, your monthly rental payment is tied to your landlord’s whims. If she wants to raise your rent, then she does it. But as a homeowner, your monthly mortgage payments are locked in, and you always know what you’ll have to pay each month.
In addition, “when renting, you’re building your landlord’s wealth . . . your monthly payment depends on rising rents, and you don’t benefit from home appreciation. When you own property, you’re building your wealth. Your monthly payment is locked in, and you benefit from appreciation. Homeownership – and the equity it brings – is still a key factor in wealth building for most Americans.”
Importance of a Broadview Heights Agent
These reasons why Realty Done thinks you should buy a house right now inBroadview Heights are indeed some compelling reasons. But even though now is a good time to buy, the market is not without some difficulties in its current state. That’s why you need to work with an experienced local agent in Broadview Heights.