Thinking about whether it’s the right time to make the leap into homeownership? Don’t let those current mortgage rates intimidate you – there are a couple of solid reasons why it still makes sense to take that step. Let’s examine the pros and cons of buying vs. renting and why buying might make sense for you!
Home Values Keep Climbing
You might have heard mixed messages about home prices. While there was a slight dip in late 2022, prices have been following a more predictable and healthier pattern of appreciation this year, spelling good news for the housing market. History reveals a promising trend – home values generally increase over time.
Reviewing data from the Federal Reserve over the past 60 years, the overall trend in home prices is a steady climb. While there was a hiccup during the 2008 housing crash that briefly interrupted the norm, the general direction is upward. This steady rise is one of the compelling reasons why buying could be more favorable than renting. As prices increase and you chip away at your mortgage, you’re also building your equity. Over time, this growing equity gives your financial well-being a significant boost.
Rent Costs Only Go Up
Another reason to consider buying vs. renting is the never-ending cycle of rising rent prices. If you’ve experienced the annual pinch of your rent getting higher, you’re not alone. For the last six decades, rents have been on a consistent incline. Choosing to buy a home allows you to lock in your monthly housing expenses and say goodbye to the headache of increasing rent payments. This stability can be a complete game-changer.
In the grand scheme of things, it’s about where your housing payments are going – an investment in yourself or your landlord? When you opt for homeownership, you’re putting your money toward your own future.
Considering the steady growth of home values and the prospect of escaping those ceaseless rent hikes, homeownership offers a path to financial stability. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), points out:
“If a homebuyer is financially stable, capable of managing monthly mortgage expenses and can handle the associated household maintenance costs, then it makes sense to purchase a home.”
The Bottom Line
In the grand picture, buying a home has more advantages than renting, even when mortgage rates are on the higher side. If you want to steer clear of ever-increasing rents and tap into the potential for sustained home price appreciation, reach out to explore your options. It could be the perfect time to make your move into homeownership!
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