With the 2021 changes in the residential real estate market, you may be wondering if you should think about buying a house now or wait until 2022 and see what the market will do. Despite recent increases in home prices, there are several good reasons to buy now instead of waiting:
1. Mortgage Rates Remain Low
Today’s mortgage rates remain near their historic lows, which will save you money over the life of your loan. You may be thinking about waiting to buy in hopes that home prices will come down in 2022. However, even if prices decline, a slight increase in mortgage interest rates will cost you more in the long run.
2. Rentals Are More Expensive and Scarce
As many of us have seen in our communities, the hot housing market has driven up rental rates in addition to home prices. Home rentals are increasingly difficult to find and are more uncertain—lease renewals are not guaranteed as owners consider capitalizing on the current market by selling their properties. Remember that your rent is paying someone else’s mortgage; money that you could be putting toward your own home purchase.
3. Homes Are a Good Investment
Home prices appreciated 16% across the nation in 2021. Freddie Mac predicts this will slow in 2022, but that prices will still go up approximately 5.3% in the U.S. And a hot market like ours may continue to see a greater increase than the national average. It’s better to buy a Montana home now than to wait. We are unlikely to see a large drop in prices like you may remember from 2008; that was an anomaly brought on by the practice of subprime lending. Despite the occasional market correction, history shows that home prices increase over time, in both the residential real estate and luxury real estate markets.
Whether you are looking to begin shopping for your new Montana home now or in the future, our PureWest real estate agents are here to help you understand the local market and assemble the strongest possible offer. PureWest Realtors stay on top of trends and new listings across the Montana real estate market.
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