Reading the title of this article may be confusing to some. You may be thinking, “What!? The prices are through the roof all over the country and Utah especially! How could you say that now is a great time to buy real estate?” Often these days, people are saying that the market is really high and that houses are too expensive to buy right now. Well, there may be some considerations to make when it comes to defining what constitutes an expensive home.
Now Is A Great Time To Buy Real Estate
A phrase that a lot of people are using these days is that they are going to wait until the market crashes to buy a home. While this has advantages, there are some setbacks that come with this mindset. One of these setbacks is that if you are not looking at your options for homes to buy, you may miss out on a great deal.
Another reason is that the housing market could very well continue to inflate for some time. Trying to wait for a market crash is not a sustainable strategy for buying a home because you would be making a decision based on speculation. If you are needing to move and are waiting for the market to crash, you may be waiting for a long time.
One of the biggest reasons why now is a great time to buy real estate is because of interest rates. Although selling prices are on the rise, interest rates on mortgages are extremely low. The entire year of 2021 has seen some of the lowest interest rates that have ever existed historically. A low interest rate means that the monthly payment on your mortgage would be lower. This is where the consideration of what you consider to be expensive counts.
Do you think that it is more expensive to buy a property that has a higher interest rate, a lower selling price and a higher monthly payment? Or do you consider a house that has a lower interest rate, a higher selling price and a lower monthly payment more expensive? Our answer is that a lower interest rate may be a better bet, but after you have done your research, you can make that determination for yourself.
Another reason why now is a good time to buy real estate is because the economy is booming. Because the economy is doing well, people can afford to buy a property that is expensive because it is likely that the prices will continue to increase. Job stability is also good due to the economy needing more workers. This means that you will likely be able to gain and retain a job that will be able to support your mortgage payments.
While it is important to consider the pros and cons of any big decision, there may be personal reasons why buying a house in 2021 could be a good decision. If you are needing to move for a job or because you are sick of your current home, do not let speculations overly influence your decision. Even if you bought a house now and the market crashed, you will still have an asset that will increase in value and that asset will have a low mortgage interest rate.
Need Help Buying A Home?
If you are trying to buy a home and are not sure where to start, we want to help you here at Besst Realty. It is important to consult the experts when you are buying a home, especially if you have never bought a home before. We have many experienced professionals who can help you find the home that is just right for you and your family. We are also happy to help you learn more about why now is a great time to buy real estate. Contact us today for more information.