As many are dreaming of a white Christmas, you might be wondering if the housing market will see a deep freeze anytime soon. This couldn’t be further from the truth!
While it’s true that fewer homes are listed over the holidays, the homes already on the market are maintaining their momentum. There are a lot of great reasons for sellers to stay optimistic through the winter. And the market for home buyers is just as strong.
Not convinced? Here are four reasons you should purchase your dream home this winter instead of waiting for spring.
1. Prices will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated 18% over the last 12 months. According to the Beverly-Hanks Q3 2021 Market Report, Asheville MSA’s home prices appreciated 13.9% over the last 12 months. The same CoreLogic report predicts that prices will continue to increase at a rate of 2.5% over the next year.
That’s a lot of numbers. The bottom line is that home prices remain on the rise, and no one in the real estate industry expects a bursted bubble like we saw in the late 2000s. Home values will continue to appreciate for years. For you that means there’s no reason to wait for a turn in the trends. If you want to invest in real estate, the time is now.
2. Mortgage Interest Rates are Projected to Increase
Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure.
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently at 3.1%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of REALTORSⓇ are in unison, projecting that rates will increase by this time next year, barring any additional unforeseen forces on the market.
An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way You’re Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage—either yours or your landlord’s.
As a homeowner, your mortgage payment is a form of “forced savings” that helps build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity. In addition, homeownership offers many economic and social benefits that are well documented through multiple studies, including tax benefits, community stability, and childhood success rates.
Think about your expenses in the long term. Are you ready to put your housing cost to work for you?
4. New Year, New You
The “cost” of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Maybe you want to have a great place for your children to grow up. Or you want your family to be safer. Or you just want to have control over renovations and your long-term monthly expenses. Regardless of the reason, make 2022 the year you Live Abundantly in WNC. Start the homebuying process now and start the year in a new home.
Ready to Purchase Your Dream Home This Winter?
If the right thing for you and your family is to purchase a home in the coming year, buying this winter than later could lead to substantial savings.
All real estate is local. In order to make confident real estate decisions, it’s important to have timely and neighborhood-specific information. Contact us today to speak with a Beverly-Hanks real estate agent about buying homes and land in Western North Carolina. View all Beverly-Hanks real estate listings.
This post is adapted from “4 Reasons to Buy Your Dream Home This Winter” by Keeping Current Matters.