High home prices, low home inventory, and steady buyer demand has many potential homebuyers hesitating to enter the market. Buyer fatigue is not a new issue in this year’s real estate market, however, as fall and the holiday season approach, many are considering once again whether they are ready to purchase a home. While every situation is different and requires personalized advice, most buyers should hesitate to exit the market right now. We are currently experiencing a unique mix of economic factors that seriously benefit homeowners, and we’ve broken down three for you in this article. Keep reading to learn why this fall may actually be the best time to purchase a home.
- Low interest rates are better than low prices
“Interest rates impact the affordability of housing far more than most people realize,” says Dan Hamilton, Team Leader at Hamilton and Company, “And with rates at an all time low, now really is the time to buy.”
NerdWallet says the national mortgage average is around 2.838%. According to mortgagereports.com, in 1981 that figure was 18%—and just twenty years ago it was around 7%. This is about as close to “free money” as mortgages are expected to get. Most experts agree that low rates are here to stay, but changes are often unexpected, and buyers would be wise to take advantage of the rates while they last.
- Owning still beats renting
Many tired home shoppers consider renting for a year to “wait out” the current seller’s market. Even when faced with the current homebuyer struggles, owning still beats renting every time. When renting, you’re contributing to your landlord’s wealth, allowing him or her to benefit from home appreciation and a host of other home owner benefits. Additionally, rent rates are highly variable and often unpredictable. When you own your own property, your fixed mortgage rate contributes to your wealth and the appreciation of your own home.
“The biggest concern we hear from potential homebuyers relates to down payments. Many people are worried they just cannot afford a house,” Dan explains. While a down payment is a sizable investment, finding the right mortgage rates and terms can go a long way in helping achieve your financial goals.
Are you curious whether you can afford to purchase a home? Our team of local financing experts specializes in financing homes in the Upstate real estate market and are prepared to find the right loan program with competitive rates and low down payments for you. With the right plan, you’d be surprised what you can afford. Turning your rent payments into mortgage payments is one of the best financial moves you can make!
- The housing market is not going to crash
Many potential homeowners, frustrated with the frenzy of today’s housing market, are convinced relief will come in the form of a crash not unlike 2008’s recession. Unfortunately for them, this just isn’t going to happen.
“In 2008, the rise and subsequent crash in housing prices was largely due to the distribution of high-risk mortgages to unqualified people,” Dan explains. Since then, lenders have created increasingly stringent loan requirements and regulations to ensure a crash specifically due to bad mortgages does not happen again.
The high prices we are experiencing are not due to an influx of unqualified buyers but simply because there are not enough properties available on the market. While we can’t predict the future and another crash may come again, it is highly unlikely that the housing crash frustrated buyers anticipate will ever come.
Low interest rates, high rent payments, and a booming seller’s market that isn’t budging – all signs point to taking advantage of the market NOW as a buyer. However, here are always more factors to consider – your location, your unique financial situation, your job security, and more. The best way to determine if now is the time to purchase a home? Meet with an expert lender to assess your personal situation and make the best decision possible!
Are you interested in selling or purchasing a home in the Upstate, South Carolina? Dan Hamilton’s experienced team is ready to help you! Contact us to learn more.
Dan Hamilton is the founder of Hamilton & Co. and the lead listing agent for the team. He is the only agent in the Upstate endorsed by Shark Tank star and real estate mogul Barbara Corcoran. Additionally, Dan hosts a weekly radio show on The Answer 94.5 and 106.3 WORD giving tips and advice on real estate and is a frequent contributor for real estate on Your Carolina TV show on WSPA Channel 7.