Smart Time to Buy a New Home? Yes or No?
With the current market conditions, is renting a better option than buying?
Homeownership continues to be the American dream, and for good reason. The homeownership rate has generally been rising through history and is currently close to its all-time high, with almost 69 percent of all US households owning their home. The number of US households is expected to increase 15 percent during the next decade, creating a continued high demand for housing.
Owning a home is the number one way that most US households build wealth. On a national level, home appreciation has historically risen 5 to 6 % per year, which means the value of home doubles every 13 years or so. The national median price of homes bought ten years ago has increased 88 percent.
Not only does owning a home provide immense personal satisfaction, but it also locks in the cost of shelter. Rental rates continue to increase. If you rented a home or apartment, your rent could increase 5 to 10 percent per year, or as much as 30 percent in three years. Renters don’t receive tax benefits, nor do they benefit from appreciation.
If you’re trying to buy your first home, it’s not wise to delay your purchase. Construction materials may continue to increase in price, which means home prices will continue to increase. You’re better off buying a new home now so you can benefit from today’s low prices, favorable interest rates and future appreciation potential. Click HERE to find out if you qualify