Are you thinking of buying a home this summer? If so, you have a great opportunity in front of you. Here are just a few reasons why this season may be the right time to make your purchase.
Homeownership is the American dream – not just because it has tangible financial benefits, but because it also has the power to change lives.
Whether your needs have changed, you’re looking for more stability, or you’re ready to enter a new chapter in your life, turn to homeownership. It not only provides a safe space to call your own, but it also helps you build your net worth through home price appreciation and home equity. Not to mention, it gives you a sense of pride and accomplishment that carries through your day-to-day life.
While the number of homes for sale is still lower than pre-pandemic norms, there is good news for your home search. Data from realtor.com shows the number of homes being listed for sale, known in the industry as new listings, has increased since the start of the year. In addition, 64% of sellers are planning to list their homes by the end of this summer. That should give you more options.
If you begin your search now and work with a trusted real estate advisor, you’ll be in a great spot to benefit from those additional choices when your dream home hits the market.
So far this year, home prices have increased. While competitive buyers are expected to keep home prices climbing, industry leaders say the pace of the increases should moderate moving forward. As Len Kiefer, Deputy Chief Economist at Freddie Mac, says:
“If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. . . . It may be more advantageous to purchase this year relative to waiting until 2023 at this time.”
While everyone moves through the homebuying process at a different pace, it’s
more important than ever to put your plans in place and begin working with a real estate advisor. That’s because it’ll cost you more to buy a home if you wait as prices rise.
Census data shows the median monthly rent is also going up (see chart below).
To escape rising rents, consider purchasing a home so you can lock in your monthly mortgage payment. Even though the number of homes available for sale is low, homeownership is a much more stable long-term investment.