It Won't Pay to Wait to Buy a Home
Don’t stay on the fence too long before buying a home.
Anyone who’s looked into buying a home right now has likely learned two things fairly quickly: mortgage rates are incredibly low. And it is still extremely difficult to buy an existing home.
For many, the difficulty that comes with trying to buy an existing home has started to outweigh the benefits of those low interest rates. It’s easy to feel defeated in competitive markets where every home sees multiple offers within a week of being listed and bidding wars send prices to unreasonable heights.
However, market projections and mortgage rate forecasts suggest that waiting to buy a home could end up costing buyers big.
Mortgage Rates
One place where those who opt to wait will likely lose money is in their mortgage rates. While buyers right now are enjoying rates around 3% and flexing larger overall budgets as a result, those who start shopping even a year from now are unlikely to see those same benefits.
There’s not a precise consensus on where mortgage rates will sit in 2022, but Freddie Mac, Fannie Mae, and the National Association of Realtors all set their forecasts at 3.5%. Mortgage Bankers Association projects rates at 3.9%.
While a half-percent difference may seem small, the effects of these increases on budgets and monthly payments make a world of difference in homeowner finances over the years.
Home Prices
In addition to mortgage rates jumping up, recent projections also suggest that home prices will increase. While home value appreciation isn’t expected to keep its 2020 pace throughout this year, industry experts still predict an average of 7.7% appreciation.
With home prices in many cities averaging in the 300s and 400s, a 7.7% increase will equate to around $25K or more, plus interest over the life of the loan. As the months pass by, buying a home will only require more and more from your wallet.
A Better Option
Knowing that it’s a good idea to get into a home sooner rather than later is different from knowing how to get into a home soon, without breaking the bank. The whirlwind frenzy of trying to navigate the market of existing homes is overwhelming at best, and results in many buyers stretching budgets unexpectedly, for houses that require serious compromise and sacrifice.
To avoid the competitive market and pay for a home with features that truly matter to them, many buyers are turning to custom home building. The option allows for more control over budget, layout, and specific elements of a home.
Every family has unique needs, from dog showers and garden space to home offices and children’s bedrooms. Paying for space that doesn’t get used, like an outdated dining room, is a common occurrence when choosing from existing homes. That misalignment isn’t cutting it anymore for many homeowners today.
Prioritize home design that fits your lifestyle when you design and build a custom home. The process has never been easier with Atmos project managers at your side every step of the way.
Ready to create the home of your dreams? Get started with Atmos today!
