Should I Buy Now Or Wait For A Year?

Dated: April 30 2021

Views: 596

Should I Buy Now or Wait?

If you’re thinking that waiting a year or two to purchase a home might mean you’ll save some money, think again.

At the beginning of the year, industry forecasts called for home price appreciation to slow to about half of the double-digit increase we saw last year. The thinking was that inventory would increase from record-low levels and put an end to the bidding wars that have driven home prices up over the past twelve months. However, that increase in inventory has yet to materialize. The National Association of Realtors (NAR) reports that there are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

This year, mortgage rates have started to slowly climb above recent record-breaking lows. Many homeowners planning to move may feel like they’ve missed the chance to score a great rate on their next mortgage. In reality, there’s still time to secure a rate far below the historic norm. Here’s why.

After creeping up for seven consecutive weeks, average mortgage rates have dropped more recently (See graph below). With rates taking a slight dip over the past two weeks at the same time the inventory of houses for sale is so low, homeowners today are sitting in the optimal seat to sell. What’s the advantage of selling your house now? Securing a low mortgage rate on your next home.

Mortgage Rates Graph

Mortgage interest rates are currently very low, but experts across the board are forecasting increases in both home prices and interest rates.

Based on projections, here’s how much you might pay for a median-priced home if you wait to buy.

Home Price and Mortgage Rate Projections

For home priced at $296,700 in 2020, the price will be $323,900 in 2021 and will be $334,000 in 2022.

Mortgage interest rate in 2020 was 3.1%, 2021 is 3.2% and will be 3.7% in 2022.

Mortgage payment in 2020 was $1,140, 2021 is $1,261 and will be $1,384 in 2022

The financial benefits of buying a home as compared to renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.

Home prices and mortgage rates are expected to rise. Buying a home now means you’ll spend less in the long run. Let’s connect to put your homebuying plans in motion before home prices and mortgage rates climb even higher.

Let's Connect Today

Give us a call at 704-975-2429 or 704-957-2232. Start searching on our website,  https://www.livingingreatercharlotte.com/

Blog author image

Albert & Lynn Alvarez

Unparalleled Customer Service! Meet The Ally Group team member, Lynn Alvarez. You need an educated, caring and knowledgeable real estate professional who stands by you through the whole process. Tha....

1 comments in this topic

  • Posted by Albert & Lynn Alvarez
    04/30/2021
    I want to buy a home now.. I will email you.

Latest Blog Posts

CHAPEL COVE In Steele Creek, Great Neighborhood in Southwest Charlotte, NC 28278

Hi there, today I’m going to talk about one of the best neighborhoods in Charlotte, North Carolina 28278 known as the Steele Creek area near Lake Wylie. You are probably wondering where is

Read More

Want To Be A Homeowner? Here's How...

What You Can Do Right Now To Prepare for HomeownershipAs rent prices continue to soar, many renters want to know what they can do to get ready to buy their first home. According to recent data from

Read More

Why This Is Not A Housing Crisis Like In 2008

Why This Is Not Like 2008 AgainDuring the Great Recession, just over a decade ago, the financial systems the world depended on started to collapse. It created a panic that drove some large companies

Read More

Is Real Estate a Better Investment Than Stocks or Gold? Let's See The Survey

Americans See Real Estate as a Better Investment Than Stocks or GoldLast month, in a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York noted that Americans believe

Read More