Why Am I Buying A New Home

Dated: November 1 2019

Views: 7

Dated: 04/16/2019 - Minna French

Views: 101

3 Questions You Need To Ask Before Buying A Home

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following three questions to help determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.

This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are:

  • A good place to raise children and provide them with a good education

  • A place where you and your family feel safe

  • More space for you and your family

  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.

Looking at home prices year over year, CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.

What does that mean to you?

Simply put, with prices increasing, it may cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

Freddie Mac, Fannie Mae, the Mortgage Bankers Association and NAR have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

3 Questions You Need To Ask Before Buying A Home | MyKCM

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

Blog author image

Minna French

"Always at your reach and at your service!" Buying or selling your home is one of the biggest financial transactions in your lifetime. What is the best price you can get? How long does it take to get....

Latest Blog Posts

Don’t Let Buyer Competition Keep You from Purchasing a Home

Don’t Let Buyer Competition Keep You from Purchasing a HomeThis year’s record-low mortgage rates sparked high demand among homebuyers. Current homeowners, however, haven’t put

Read More

Wednesday Wisdom - Four Projects to Enhance Your Home Value

With demand high for homes nationwide, the market has been hard pressed to keep up its supply. In fact, the number of homes for sale is teetering on record-low territory, but some cities are serving

Read More

Should I Renovate My House Before I Sell It?

Should I Renovate My House Before I Sell It? [INFOGRAPHIC]1.6KSHARES1.4K8526164Some HighlightsIn today’s hyper-competitive market, buyers are often willing to overlook cosmetic or minor repair

Read More

Why Selling this Fall May Be Your Best Move

Why Selling this Fall May Be Your Best MoveIf you’re thinking about moving, selling your house this fall might be the way to go. Here are four highlights in the housing market that may make

Read More