predictions that rates could sneak up over the next year as economic conditions level out.
If locking in an affordable mortgage rate is important to you, then it’s smart to do what you can to enter the market as soon as possible.
Even if you pay a higher price for your home due to low inventory, consistently rising home values could offset your purchase price. Over the next 12 months, Zillow is forecasting an 11.7% appreciation in U.S. home values. That would mark a slowdown in appreciation since over the past 12 months, the typical home has increased 17.7% in value.
That’s not all, however. Consider these other ways that rising home values can make it smart to buy a home during this time:
- Building equity is as easy as staying put. Home values are quickly accelerating as available inventory remains lower than normal.
- You may face competition, but you can look forward to appreciating home values once you buy a home.
Regardless of how challenging your home search may be, limited inventory doesn’t mean zero inventory. Stay the course, and it could pay off—literally.
There’s less competition in the colder seasons
Fall and winter are the ‘sweet spot’ for buying a home since most buyers conduct their home search in the spring and summer months.
This means less competition from other hungry buyers, among other advantages:
- Sellers have fewer offers to consider, giving you a chance to stand out from the pack.
- People who sell in ‘off-seasons’ could be more financially motivated to sell, giving you more negotiating power.
- There is decreased pressure to settle for less favorable terms when the competition is decreased.
If you’re serious about buying a home, the next few months could be the right time to make your move.
Now’s a great time to invest in an income property
Rents are higher than they’ve ever been. Specifically, they’ve risen roughly $200 a month on average nationally. Even if you pay a bit more for your rental property, it’s possible to regain that equity simply by soaking up those appreciating home values I mentioned earlier.
The best part is that you can typically include projected rental income in your home loan application, which may get you approved for more funds. This strategy could help you become more competitive in the current market, too.
It’s possible to buy a home in 2021. Let me show you how!
So, is it the right time to invest in real estate? All signs continue pointing to yes. There are plenty of ways to approach the current market conditions in ways that help you reach your homeownership goals.
Call-to-action: Download The Path to Homeownership E-Book (CTA should say: Snag a FREE copy of The Path to Homeownership E-Guide)