If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following 3 questions to help determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.For example, a survey by Braun showed that over 75% of parents say, “their child’s education is an important part of the search for a new home.”This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. They are: 

• A good place to raise children and for them to get a good education

• A place where you and your family feel safe

• More space for you and your family

• Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in May (the latest data available) was $252,800, which is up 5.8% from last year. This increase also marks the 63rd consecutive month with year-over-year gains.If we look at home prices year over year, CoreLogic is forecasting an increase of 5.3% over the next twelve months. In other words, a home that costs you $250,000 today will cost you an additional $13,250 if you wait until next year to buy it.What does that mean to you?Simply put, with prices increasing each month, it might cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.3. Where are mortgage interest rates headed?A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.The Mortgage Bankers Association (MBA), NAR, and Fannie Mae have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

10141 Atlantis Dr,Elk Grove CA4 Beds, 3 Baths, 3,037sqft9836 Kapalua Ln,Elk Grove, CA5 Beds, 4.5 baths, 4,717 sqft 

1167 Rose Tree Way,Sacramento, CA3 Beds, 2 Baths, 1,494 sqft 

4551 Oxbow Ridge PlFair Oaks, CA4 Beds, 3 Baths, 2916 sqft

Suneet Agarwal, REALTOR®  

Best Sac Homes Group @ HomeSmart Realty Cell: 916-216-7375 3461 Fair Oaks Blvd Ste 125  Sacramento, CA 95864

suneet@

bestsachomesgroup.com

www.bestsachomesgroup.com