The real estate market is constantly changing, so of course DO YOUR RESEARCH before buying! Do not jump the gun on this one! Unbiased advice from family and peers may be kind, but you are the only one who knows what your needs are when it comes to buying a home. That's why as part of your research, you should ask yourself these 3 questions:
Q1: WHAT MADE YOU CONSIDER OWNING A HOME?
Forget finances for a minute and focus on what made you consider even buying a home in the first place!
Is your family expanding?
Does your family feel safe?
Is there a STELLAR school system in the area so your children can get the education they deserve?
How about that unbearable landlord?
Simply need more space?
Looking to build equity?
Knowing the primary reasons for why you're buying can help you (and your future real estate agent) hone in on what options are best for you, right now and long-term.
Q2: WHICH WAY IS THE REAL ESTATE MARKET GOING?
Include this question in your initial research and don't sleep on your decision to buy for too long! Home prices in general are on the rise. Not only are they on their way back up, but these increases are happening monthly.
According to Existing Homes Sales Report from the National Association of Realtors (NAR), the average price of homes in May 2017 went up 5.8% from last year.
If you wait until next year to buy, you might be scrapping for change in the cushions to say the least. Not only will it cost you more to buy, but you will also need to increase your down payment to account for the higher price of the home. Talk to your agent for more information on why right now may be a better time to buy than taking some time to save more up-front.
Q3: WHAT IS THE MORTGAGE FORECAST?
The initial process of purchasing your home may seem quick (especially in the fast-paced Dallas real estate market), but there are a lot of moving parts! The ‘long term cost’ of buying a home can haunt you if you buy at the wrong time! Mortgage Bankers Association (MBA), and NAR have projected that mortgage interest rates will definitely increase over the next twelve months. The smallest increase in mortgage rates can have a huge impact on a home owner over time.
Final Thoughts
If you and your family feel it is the right time to buy a home then GO FOR IT! Just consider these points when making the final decision, and contact us at The Castillo Group to get any of your questions answered!