Today’s Biggest Buyer Concerns
I’ll rent instead.
Some may consider renting as the better option; however the monthly cost of renting a home is skyrocketing. So far in 2021, rental prices have grown a staggering 9.2% If you continue to rent, chances are your rent will keep increasing at a fast pace. That means you could end up spending more of your income on your rental as time goes on, which could make it even harder to save for a home.
I’ll wait it out.
Others may consider waiting for another year and hoping that purchasing a home will be less expensive then. A monthly mortgage payment is determined by the price of the home and the mortgage rate. A lower monthly payment would require one of those two elements to decrease over the next year. However, experts are forecasting the exact opposite.
The Home Price Expectation Survey calls for home prices to increase by 5.12% in 2022 (https://pulsenomics.com/surveys/#home-price-expectations).
Based on these projections, let’s see the possible impact on a monthly mortgage payment:
Waiting until next year, you would potentially pay more for the home, need a larger down payment, pay a higher mortgage rate, and pay an additional $3,696 each year over the life of the mortgage.
Bottom Line
While you may have missed the absolute best time to buy a home, waiting any longer may not make sense.
Affordability is likely to worsen before it improves, so try to buy it now, if you can find it.
Contact Ben Keeney 203-313-0013 for more information.