Home prices are rising, and this is a good time to be a homeowner. It has been about 10 years now since the price has bottomed out. So if you are thinking of renting vs. buying a home, you might want to rethink your decision. Now is the best time to purchase your own home because interest rates are working in your favor. But is it all good? What is the biggest challenge that people who are looking to purchase a home are facing these days? Downpayment. Downpayment, or the lack of it, is one of the challenges a homeowner faces even if mortgage rates are excellent these days. This is because as the property price increases in value, automatically, the downpayment increases as well. This may not be a problem if you are looking to apply for a VA loan or a USDA loan. There is a word of caution, though. Low mortgage rates are not automatically beneficial for all. Prospective homeowners would want to avail of this low rate, which is good, but this demand forces the market to raise prices as the demand increases. As the housing prices are increasing at a fast pace, this means that, yes, you have a lower mortgage rate, but you are paying more for the house that you are planning to buy. You’d be surprised to know that the biggest jump in prices is homes with open spaces. This is probably brought about by the COVID pandemic, where buyers want to have a “freer circulation” of air in their homes. Another challenge that prospective buyers are facing now is the lack of homes actually to buy! Yes, the mortgage rates are good, but if there is nothing to buy, what good will it do. And this reality also adds to the rising of the property price. If you need more information, don’t hesitate to call us up and we would be glad to answer your questions.
Home prices are up. Rent or buy?
