If you’re considering buying a home, but you’re frustrated about high interest rates and soaring home prices, here’s something to think about. History shows that home values typically go up over time. In fact, home prices almost ALWAYS go up.
Let’s take a look at home prices over the last 60 years.
With the exception of the housing price decline during the global financial crisis, prices have increased steadily for many years. The outlook, even now after a rapid increase in home prices, is that home prices will continue to climb, albeit at a slower pace than what we’ve seen since the pandemic. The longer you wait, the more capital appreciation you miss. And if you think renting is cheaper, don’t forget that you never realize any sort of appreciation when you rent.
Speaking of renting….let’s take a look at rental prices over the last 60 years.
Notice how the rental price trend is very similar to the home price trend. Over time, rents have increased dramatically. Think about it. In times of rising inflation, is your landlord going to suck up the higher cost of living, home maintenance, etc.? Nope……that’s getting passed on to you, the renter. Don’t make your landlord rich. Invest in yourself through homeownership!
Dr. Jessica Lautz Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), sums it up nicely when she says: “If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”
Ready to make that all-important investment in yourself? Please reach out to me at your convenience and we’ll crunch the numbers together. 👍😊
