Is Now the Right Time to Buy a Home? Here's What You Need to Know

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The real estate market is always changing, so it's important to do your research before making a decision. While family and friends may offer well-intended advice, only you truly understand your needs when it comes to buying a home.

What Made You Consider Buying a Home?

Before jumping into the process, take a step back and reflect on why you’re considering homeownership in the first place. Ask yourself:

• Is your family growing, and do you need more space?
• Do you feel safe and comfortable where you live now?
• Are you looking for a better school district for your children?
• Are you tired of dealing with an unreasonable landlord?

Understanding your motivation will help you determine if now is the right time to make a move.

Where Is the Real Estate Market Headed?

Waiting too long could cost you. Home prices are rising, and they're increasing month after month.

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the average home price in May 2017 increased by 5.8% compared to the previous year. If this trend continues, the home you’re considering today could be significantly more expensive next year. Plus, a higher price means a larger down payment—making homeownership even more challenging to achieve.

What About Mortgage Rates?

The cost of buying a home isn’t just about the listing price—it’s also about the long-term expense of your mortgage. Experts at the Mortgage Bankers Association (MBA) and NAR predict that mortgage interest rates will rise over the next year. Even a small increase in interest rates can add up to thousands of dollars in extra costs over time.

Final Thoughts

If you feel ready to buy a home, don’t wait too long. Consider these key points and make the decision that’s best for you and your family. At the end of the day, this move is for you—make sure it’s the right one!