Just, gotten married? Starting a family?
Growing family? Downsizing? All are
excellent reasons to buy a home in today’s market. If you are looking to upsize and are in the
market to buy, what makes now the perfect time to buy? One, interest rates are up but stable. Prices have risen, but have now leveled off
from the fever pitched frenzy of the past two years. Price corrections are more
common and days on market have increased slightly. All these are positive signs that our market
is reaching stabilization. If you are just starting a family or upsizing for
the long term, now is the time to buy and build long term wealth and equity in
a home. If you are downsizing, now is also a great time to do so. You can
potentially sell the existing home that you’ve been in for years, make a
handsome profit and use proceeds to buy something smaller that suits your
needs, while having a little nest egg left for investments, remodeling etc.
There is little
reason to listen to that know it all uncle that says, “Now is a terrible time
to buy, prices and interest rates are too high!” In our Eastern North Carolina market, prices
have increased, but not at the crazy levels like in large scale metropolitan
markets, nationwide. Prices have risen steadily in our market over the past two
years, but at healthy paces, matching demand and growth. Which means should the
real estate market take a turn losses won’t be compounded like in many
And, while it
is true that interest rates have risen, it doesn’t mean, now is a bad time to
buy. Interest rates are currently in the
6-7% range. Remember back in the 2000’s when everyone was rushing to refinance
when rates dropped to 6%, because that was historically low? Remember the 1980’s
when interest rates were over 16%? The bottom line the 2.75%-3.0% rates are
likely GONE for the rest of our lifetime.
Remember 6% is still a reasonable interest rate for purchasing a home.
a Long Term Renter
put, is building wealth for a landlord. You are likely paying more per month in
rent than if you were purchasing the home you’re renting. Moreover, you are
building zero equity by renting. Here’s an example, Let’s say that a 2000 sq.
ft., 3br, 2bth home rents for $1200 per month. This same style of home is
selling in todays market for $175,000 dollars. At a 6% interest rate the loan
payment would be $1050 per month. And most importantly you could be owning,
building wealth and equity for yourself. If renting because of issues with your
credit, pull your free yearly credit report from the 3 bureaus. Look for errors
and dispute false information. Discuss how to solve issues on your credit
report with any of our Five Star Service Providers on our lenders page. It may
take time to get into a position to finance a home, but it will be well worth
it in the long run.
rates, specific needs due to life changes, building wealth for the future and
moving from renting to achieving the American dream of homeownership are all
excellent reasons to buy property in Eastern North Carolina. Not to mention
Eastern NC is the best place to call Home!
If you want
more information about buying or selling a home, give any of Riverside Realty
Groups Agents a call us (252) 557-2557 our Visit us at www.riversiderealty.group!