Tuesday, October 31, 2023 / by Va Marketing
Are you pondering whether the current circumstances are conducive for homebuying? Although the prevailing mortgage rates may seem a bit daunting, here are two compelling arguments to consider why this could still be a favorable moment to step into homeownership.
Home Values Exhibit Long-Term Appreciation
Utilizing data from the Federal Reserve spanning six decades, one can discern that, on the whole, home prices have exhibited a steady ascent. Notably, there was a deviation during the housing market downturn of 2008 that temporarily disrupted this conventional pattern. Nevertheless, in the larger scheme, home values have consistently trended upwards.
This continuous surge in home values is a compelling rationale for favoring home purchase over renting. With the appreciation in prices, coupled with your mortgage repayment, you progressively accrue equity. Over time, this burgeoning equity enhances your net worth.
Renting Incurs Ongoing Escalating Costs
Through home purchase, you gain the ability to lock in your monthly housing expenditures and bid adieu to the vexing cycle of escalating rents. This newfound financial stability is a transformational game-changer.
By embracing homeownership, you are investing in your own future. In the case of renting, your payments constitute an expenditure with no return.
When you factor in the enduring upward trajectory of home values and the prospect of liberating yourself from the relentless burden of rent hikes, homeownership emerges as a route to long-term financial security. Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), underscores:
“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.”