Many buyers today are unsure as to whether it’s still a good time to buy,
so let’s get to the bottom of this question today.
If you’re wondering whether it’s still currently a good time to buy, there are a couple of market indicators you’ll need to consider.
Over the last couple of years, interest rates have been at incredible historic lows. During that same time, though, they’ve also been steadily climbing. Interest rates today are hovering between 4% and 5%. This is still quite low, but this rate won’t last forever. The continued rise in interest rates will have a significant impact on affordability.
Speaking of affordability, you may have heard that buying a home has become too expensive. Yet when you consider that rental rates have been increasing by an average of 7% annually for the past 23 years, you may begin to see why purchasing a home is still the more affordable option in the long run.
Renting is not only expensive, but it also limits you from having the freedom to do as you please with your home. California homeowners, meanwhile, can now go so far as to build an accessory dwelling unit (also known as a “granny flat” or “mother-in-law quarters”) onto their property. Better still, this space can be rented out as a means of bringing in additional income to offset your mortgage payment. The addition of such units can also tremendously increase the value of your property, in general. So if you’re worried about the affordability of owning a home, be sure to keep this in mind.
The bottom line is this: The best way to determine whether a home purchase is the right next step in your life is to consider the opportunities available to you within your specific market. That said, the opportunities our area market are fantastic right now. And with inventory levels on the rise, buyers have more to choose from as they leverage the factors we’ve discussed today.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.