Buying a home is a huge milestone in one's life. It is a decision you make by considering your circumstance based on where you are financially and emotionally. However, with what is happening in the rental market, now is an excellent time to buy.
So, What's going on in the rental market?
The cost of rentals has grown at its fastest pace ever in the last three decades. The national median monthly rental price is now over $2,000 for the first time ever. The monthly rent has increased by over 30% in some major cities. The rise in rent is expected to continue to rise sharply into 2023.
Hence, the reason why it is an excellent time to buy.
This is because, after several years of a hot seller's market. The real estate market is beginning to shift to a balanced market.
Although interest rates keep rising and have risen over 5%, rates are still historically low. There is reduced competition for homes between buyers due to the decrease in mortgage demand resulting in fewer buyers.
In addition, after years of not enough homes being available n the market, housing inventory has risen almost to 20%, thus creating more buying opportunities.
So, why should you buy a home? Here are some financial benefits of owning your own home.
Protection against Inflation
Owning your own home provides stability. With a fixed mortgage rate, your monthly payments can be locked in. Thus, you are secure from fluctuating inflation.
Appreciation
Every market differs from one another. However, home values have historically appreciated about 4% annually. In addition, you get to enjoy the appreciation for the total cost of the home, not just the cash you put down.
Pay your mortgage
By buying your own home, you begin to build equity on your own property as the balance reduces. A bonus is you are paying your own mortgage, not your landlord's mortgage.
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