Benefits of Buying this FallAs housing prices and interest rates have increased dramatically, many potential buyers are waiting on the sidelines wondering whether purchasing a home is in their best interest - or if waiting it out is the smarter decision. While the answer to this question differs depending on the real estate market and your financial situation, experts say waiting might make your future home purchase more expensive due to increasing interest rates.
Here are a few insights on why buying a home this Fall can be beneficial for you and your family.
Demand for Long-Term Rentals is Up, Causing Rents to Skyrocket
The long-term rental market is experiencing a surge in demand as many Americans are having a hard time keeping up with the ultra-competitive housing market. Renting may even be the less affordable option for Americans in some markets.
If you can find an affordable place to rent, it might not last long. Unlike with fixed mortgage payments, your rent payments may increase over time. Plus, the money you pay toward rent goes straight into the pockets of your landlord. However, when you purchase your own home, a portion of your monthly mortgage payment, known as the principal, will allow you to build equity in your home. Later down the road, if rates decrease, you could refinance your mortgage to lower your interest rate. Or, if desired, you can do a cash-out refinance and borrow against the equity in your home to potentially lower your interest rate and pay for renovations, college tuitions, weddings, debt, or anything else that you would like.
Mortgage Interest Rates are Expected to Increase
Mortgage rates have been progressively climbing in 2022 and could continue to rise throughout the winter. Although rates are the highest we’ve seen in recent years, they are still considered lower than in decades past. Purchasing this fall can combat rising interest rates and give you the opportunity to refinance once rates lower.
Experts Say We’re Not in A Bubble
The housing bubble that burst in 2008, causing crippling economic repercussions and lead to the Great Recession, was primarily driven by lenders extending credit to those who were not qualified. There is one huge difference between now and 2008 – lenders have raised their requirements for securing a mortgage. As a result, average credit scores are higher, more documentation is needed, and loans are more proportionate to the borrower’s income. If you’re waiting for a bubble to pop, it might be time to reconsider.
While navigating the homebuying process can be a complicated process, especially in a red-hot housing market, you can take comfort in knowing that your loan officer and real estate agent are here to ensure that things go smoothly. Keep your head up and know that you will find a home that fits your families wants and needs, and rest easily knowing that you’ve made a worthwhile invest in your future.
See the neighborhood in action
Buying in the fall allows you to check out potential homes when neighborhoods are bustling with back to school activities. You can see where your child’s bus stop would be, get a good feel for how many kids are in the neighborhood and you can visit the school itself, while classes are in session.
Less sales means more attention for you
Moving companies aren’t as busy, so it is easier to schedule your moving date. It’s also a great time to get a lot of attention from your REALTOR® and Mortgage Loan Officer.
Most potential buyers have noticed that the market has been red hot this Spring and Summer. However, new data shows that the competition in many markets has started to slow. Less buyers are participating in costly bidding wars that can drive prices up, and inventory has started to slowly rebound from record lows. Buyers are also seeing more selling concessions that were not previously provided during the heat of the seller’s market. Not only will less competition help to keep home prices from rising so quickly, but it also means that as a buyer, you’ll have more time to think on a house to truly decide if it’s right for you.
Take advantage of those year-end sales
If your house is a fixer upper, jack pot! The fourth quarter can be a great time for renovations. Fall is the time to save on new floors, windows, cabinets, air conditioning, really anything that is considered off season. Companies and tradesmen want to keep their people busy and are willing to give you a price break as incentive.
Don’t fret fall house hunting! Take advantage of all that fall has to offer and get into your beautiful new home in time for the holidays.
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