Powerful Reasons to Buy a Home Now

Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a home. Here are three major reasons to buy today.

1. Affordability

Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, affordability is determined by three components:

• Price
• Wages
• Mortgage Interest Rate

Prices are up, but so are wages – and interest rates have recently dropped dramatically (see #2 below). As a result, the National Association of Realtors’ (NAR) latest report revealed that homes are MORE affordable throughout the country today than they were a year ago.

“All four regions saw an increase in affordability from a year ago. The South had the biggest gain in affordability of 6.9%, followed by the West with a gain of 6.0%. The Midwest had an increase of 5.8%, followed by the Northeast with the smallest gain of 1.8%.”

2. Mortgage Interest Rates

Mortgage rates have dropped almost a full point after heading toward 5% last fall and early winter. Currently, they are closer to 3% Additionally, Fannie Mae recently average rate for a 30-year fixed mortgage will be 3.7% in the second half of 2020. With mortgage rates remaining near historic lows, Fannie Mae have increased their forecasts for housing appreciation for the rest of the year. If home price gains are about to re-accelerate, buying now rather than later makes financial sense.

3. Increase Family Wealth

Homeownership has always been recognized as a sensational way to build long-term family wealth. 

“U.S. homeowners who sold in the second quarter of 2020 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2020 and up from an average gain of $60,100 in Q2 2019. The average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of original purchase price.”

The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.

Bottom Line With affordability increasing, mortgage rates decreasing, and home values about to re-accelerate, it's time to talk with me today, a real estate professional to determine if buying now makes sense for your family.
Contact me today, LaNae Kenyon 949-547-3053