BIC BLOG: 3 Reasons to Buy a Home Now
Life Changes
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.
Interest rates
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 metropolitan markets.
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.
You’ve Been a Long Term Renter
Renting, simply 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.
Final Thoughts
Stable interest 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!
