The forecast for the 2018 housing market suggests there are a number of reasons to buy a home today. If you have been thinking of buying a home today but just can’t find the necessary motivation, then you need to consider these issues.
Increasing Home Prices
Home prices have been increasing in the Lansing area for the last couple of years. Each year you wait to buy a home, you lose buying power. That house that you have been thinking of buying will cost you more money the longer you wait. What you can buy today for $750 per month will most likely be much higher by the end of the year 2018. A $100,000 house will cost $115,762 in 3 years with only 5% yearly appreciation.
Increasing Interest Rates
Most financial experts are expecting interest rates to continue to increase for 2018. Rising interest rates hurt potential buyers by making the monthly payments increase even if the home values don’t and it hurts buyers because many home owners will not put their homes up for sale knowing that they will also have to buy another home with the higher interest rates. So, higher interest rates can really hurt in two different ways.
One of the biggest reasons to buy a home today: Missed equity
When house prices are on the rise, you build equity. When you don’t own a home, you miss the opportunity to build equity. Think of it as a savings account. You can’t earn interest if you don’t open an account and deposit money into the account.
Remember that $100,000 house mentioned above?
Well, that $15,762 could be yours in 3 years if you decide to buy a home today instead of waiting 3 years from now to buy.