The future looks bright for those looking to buy a home in today’s market. There are a handful of reasons for that, which potential homebuyers should keep in mind in their home search journey, as compared to the past couple of years.
Home values will rise over time
Historically, home values across the country have risen over time (with the exception of the Great Recession). Buying a home has always been an excellent investment – especially today, when home values are multiple times higher than they were in the 1950s, with an increase in prices in each decade since then.
More homes are for sale today
Compared to the kickoff to 2022, the current supply of homes has now grown significantly, according to the NAR. Why? Homeowners are listing their homes for sale and homes are staying on the market longer, all while buyer demand has moderated because of the higher mortgage rates. And, with more inventory, there should be less competition from other buyers.
Home prices will not drop
This is the prediction, anyway – unlike it did in 2008. Experts instead are projecting a slight appreciation and others for a bit of a depreciation, which evens out into a fairly neutral appreciation of home prices next year.
Mortgage rates are expected to lower
Yes, mortgage rates have spiked this year, but, in recent weeks, the rates have moderated. This may be a sign that inflation is easing up ever so slightly. And if this does indeed happen, the buyer pool will inflate, triggering more competition once again. Tip: the advantage is buying before they do.
Buyers can get tax benefits
A big benefit to buying a home now is the mortgage interest deduction, which allows you to deduct all the money you pay toward your mortgage on your federal taxes if your loan is less than $750,000 and you choose to itemize your deductions. This can add up to significant tax savings!
Buyers can refinance in the future
Mortgage rates may seem high right now, but they’re still low in the big picture historically. In fact, for the last few years, the Federal Reserve held rates artificially low to bolster the economy during the pandemic. And they’re now rising to force down inflation. Even if mortgage rates continue to fluctuate over time, you’re not locked into the rate on your mortgage forever. When rates go down, you may be able to refinance your mortgage to lower the interest rate you pay and reduce your monthly payment.
If you’re ready to take advantage of buying a home, you need to work with a real estate agent who stays ahead of the market changes. Paige Bird has been the #1 South Carolina RE/MAX agent for the last eight years.
Contact Paige Bird today so she can sit down with you to get started in the home-buying process at
(843) 450-4773.
