If you’re in the middle of buying a home in the greater Raleigh area, you’ve probably already listened to a lot of unprompted advice. Home-buying, and real estate in general, is one of those topics that elicits some pretty strong opinions.
At the end of the day, however, it all boils down to what you think and what you’re looking for in a home. That’s why I recommend sitting down to ask yourself three big questions before you buy a home.
1. Why are You Buying a Home?
Put aside the financial side of things for a minute. Why do you really want to buy a home? If you have kids, you might be thinking about living within a great school district. If you’re nearing the retirement age, you might want to be closer to your family and friends (as well as your favorite golf course).
It may be for a different reason altogether! There are plenty of reasons to buy a home, and each one is just as valid and important as the last.
In fact, did you know that the top four reasons Americans buy a home, according to a study at Joint Center for Housing Studies at Harvard University are:
- A good place to raise children and provide them with a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of that space
What non-financial benefits do you hope to gain from owning a home? Those are the most important things to consider when you start searching.
2. How are Home Values Faring in this Market?
Over the past several years, home values have appreciated steadily. According to the National Association of Realtors’ Existing Home Sales Report median price of homes sold in February was up 3.6% from this time last year.
In their recent Home Price Insights report, Core Logic predicted that home values would rise 4.6% over the next year.
With home prices increasing so steadily, now is the best time to buy. For example, if you’re looking at a home that is worth $250,000 today, it will cost around $11,500 more if you wait until next year to buy it.
3. What are Mortgage Interest Rates Like?
The long-term cost of a home is largely based upon mortgage interest rates, which dictate how much you’ll end up paying every month for your home.
Right now, mortgage rates are at their lowest. However, both the NAR and the Mortgage Bankers Association predict that mortgage rates will increase over the next year.
So, now is the time to buy a home and lock in those low mortgage rates! This will ensure a steady, low monthly mortgage payment in the Raleigh market.
How to Know When It’s Time to Buy a Home
Truthfully, only you can know when it’s the right time. Buying a home is a huge decision, and whether or not it makes sense for your right now depends entirely on how you answered those three questions.
Have additional questions about buying a home in Raleigh? Linda Craft & Team REALTORS® is here to help. Give us a call to talk home buying. We’d love to walk you through your different options in the greater Raleigh real estate market.