What is the better option for buyers in this real estate market?
The market has made it challenging for home buyers, who have to balance little inventory and a lot of competition. So, in a time like this, with interest rates shooting up more and more, what options do home buyers have? Should they just rent? Should they take the leap and buy? Should they just keep waiting?
According to a (past report in March 2021) from Zillow, it might make sense for buyers to act now — even in a competitive market. It could save people hundreds on their monthly mortgage payments if they move quickly, the report found, as experts predict home values and interest rates will rise.
“The best time to buy a home should always be when it’s the right time for you and/or your family. However, home shoppers would be wise to gather as much information as possible and use it to make smart decisions that maximize their buying power,” Zillow Home Trends Expert Amanda Pendleton said in a news release.
With it being a seller's market right now, buyers often consider keeping their money in the bank, preferring to hold cash, but is that the wise thing to do? I get it, it's a tough market right now, it may be nerve-wracking to deal with putting an offer on that home you have dreamt about and very likely deal with buyers’ fatigue. However, investing in real estate may be more beneficial than you know in the long run. Yahoo! Finance makes a good point
“You need to look at money as a tool and use money to build wealth.”
To that end, money you put into a bank does not build you any wealth. An average interest-earning bank account will pay between 0.01% and 0.50% interest, which is less than the current rate of inflation, which was 6% in 2021, he said.
In a past blog I wrote in February, "Invest In Real Estate? Or Keep It In The Bank?" I mention how Yahoo! Finance points out that,
“In general it is better to put your money into real estate,” said Daniel Chan, CTO of Marketplace Fairness. “The main pros for investing money in a real estate property are that you can make a profit off the investment, as the value of the property increases, and you can use the property to generate income in the form of rent.”
Remember, for several, your home is your greatest investment! And you want to always do your homework. Sit with a mortgage broker, see how much you qualify for, then talk to a real estate agent and see if you can get what you want that is within your budget. A real estate will help educate you about the current market conditions and what to expect. Ultimately, it is up to you, and sometimes, the best option for you is waiting, but the best way to know for sure is speaking to a professional and seeing where you are at.
If you do plan on or have already bought, investigate options as to how you can help set yourself up for success.
Budgeting tips for new homeowners
There are some budgeting tips for new homeowners. In fact, new homeowners should start budgeting sooner rather than later. It will help protect your personal finances and investment in your new home. Some unpredictable circumstances are always possible and a balanced budget with a healthy savings account will better prepare you. This will leave you having peace of mind for the future. Things like, anticipate new expenses, homeowners’ insurance, homeowners’ association fees (if applicable) or budgeting for future projects etc.
Owning a home may be your dream, but for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.
Also consider investing in a home where you are not battling as many buyers, however still appreciating in value.
In December 2021, the average appreciation for Monroe homes was 25.1%. March update: was average appreciation of 26.6%. That is a 1.5% increase within the past 3 months. And now in April we are looking at 30.1%. As you can see, the number is consistently going up. Monroe is already at a 5% increase since December 2021.
Snohomish city, known to be very charming, and considered to be very beautiful is mentioned to be the "Antique Capital of the Northwest" according to Google search. Snohomish city has been consistently growing as much as other locations in the Snohomish cities. And not only have many people continued to move into Snohomish city but home values have continued to grow as well. In fact, as of April 2022 the average appreciation for Snohomish city homes is 27.8%
To find out about Duvall and Sultan click on Monroe, Snohomish city, Duvall and Sultan market update
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