4 Reasons Why It's Still a Good Time to Buy a Home

family touring a home with a real estate agent
  • Written on July 12, 2022 By Stanley Martin

When it comes to buying a home, there's always the question of when is the right time to do so. Maybe your family has grown, you've got a job in a new city or you need more – or less – space. These reasons would make any time a good one to purchase. We’ve seen historically low interest rates but even with interest rates on the move, in certain situations, it is still a good time to buy. Here are four reasons why:

  1. Rents are still going up. According to a report from rent.com, the average cost of rent in most markets is still increasing, with more increases predicted. The report states that rents for a two-bedroom unit have grown by almost 27 percent since last year. Even if you're lucky enough to find an apartment within your budget, there's no guarantee that it will stay as landlords enact rent hikes to keep up with inflation.
  2. Historical interest rates. Yes, interest rates have been on the move but here's some good news: current mortgage interest rates are still lower than the average mortgage interest rate historically. According to Freddie Mac, the average mortgage rate for a 30-year fixed-rate mortgage over the last 50 years was 7.78%. So even with the changes to the interest rates, if you're in an ideal credit situation you'll probably be able to buy with an interest rate that is below the historic average.
  3. Buying a home is an excellent long-term investment. For many people, buying a home is the most significant investment they will ever make. Not only is it a place to live, but it is also a substantial source of financial security. Homeownership provides excellent tax benefits and allows you to build equity, which is the portion of your home's value. Your equity will increase as your home appreciates and you make mortgage payments. Real estate tends to be a stable investment, making it an ideal choice for those looking to build equity. Investing in a home can secure your financial future and build equity that will benefit you for years.
  4. SMart Financing. When financing a new home, there are a number of possibilities to consider. SMart Financing offers flexible financing options such as extended rate locks and closing cost assistance to help you buy with confidence. Extended rate locks allow buyers to lock in an interest rate for a set period, between 80 and 350 days. This option benefits buyers who are not ready to close on a home but want to avoid interest rate increases. Closing cost assistance is another helpful financing option. It can alleviate some of the upfront costs of buying a home, such as appraisal fees, title insurance, and loan origination fees. There are even options for Understanding all the financing options available allows you to make the best decision for your situation.

If you're on the fence about buying a home, there's no need. Now is still a great time to get started. With rental rates increasing and the availability of extended rate locks and closing cost assistance, buying a home can ensure your financial security. Homeownership is an excellent investment that can pay off down the line. Ready to buy your new home? Contact our New Home Consultants today for more information, or start browsing our available homes online.