The spring homebuying season in the US is experiencing intense competition despite predictions of a market crash and bargain prices.The supply of available homes is decreasing, as homeowners with historically low mortgage payments have no incentive to sell.Bidding wars have become common, reminiscent of more prosperous times.
The global real estate market is expected to reach USD 8,364,886.92 million by 2027.
The market is forecasted to grow at a CAGR of 4.14% during the forecast period.
Trends Impacting the Real Estate Market in 2023:
1- Sustainability and Green Buildings
2-Technological Integration
3-Urbanization and Mixed-Use Developments
The Fed hiked its key interest rate by 25 bps to 5.5%The Fed expresses doubt that inflation will continue to decrease towards its 2% target without implementing another rate hike.
The number of build-for-rent homes under construction has reached an all-time high of 44,700.
That is ↑ 3X the number of homes completed in 2022.
In 2022, over 14,500 BFR homes were completed, ↑ 47% yearly and the highest yearly total to date.
Prior to 2020, the avg number of BFR homes built annually was only 6K.
1. Mortgage rates are unlikely to budge.
2. Housing inventory might ↑, but only slightly.
3. Home sales could ↓.
The decision to buy or sell requires careful consideration individually.
By making bi-weekly mortgage payments, a buyer can save up to $20K in interest on a $200K loan with a 4.1% APR over a 30-year loan. This is because 26 half-payments or 13 full payments are made per year, instead of the usual 12 payments. This results in paying less interest over time and building equity faster.
Mortgage interest rates have been volatile recently, due to investors trying to guess the Federal Reserve’s next move. The Fed has been steadily increasing its own short-term rate to bring down inflation, which has caused mortgage rates to go up, down and up again. While inflation has decreased, it is still higher than the Fed’s 2% goal. Higher rates have made it more challenging for buyers to afford homes and incentivized many would-be sellers to stay put instead. Real estate experts don’t expect mortgage rates to return to the record lows experienced during the COVID-19 pandemic, and
One thing is for sure. If there is somehow a housing market crash this year it won't be from an abundance of foreclosed homes!
Home-price volatility is settling asymmetrically, with some areas experiencing price increases and others seeing declines.San Francisco and New York City have seen decreases and modest increases in home prices, respectively.
If you bought your house and have lived in it a few years, you may have a significant amount of equity!
You may not need as much for a down payment on a house as you think!
Hello and welcome to this post on a choice that many of us will have to make at some point in our lives: Should we buy a home or stay in our current rental? This is a complicated situation that depends on a number of financial and emotional aspects. We shall discuss the various advantages of buying a property in this article. Our goal is to give you the information you need to make wise choices as you move toward homeownership. Whether you’re a first-time buyer or thinking about switching from tenant to owner, this conversation should be helpful.
Check out this quick video Ken made about this:
Alright – Let’s get on with the article!
You’ll hear the word “equity” a lot in the world of real estate. Equity can be defined as the difference between your home’s market value and the balance of your mortgage. A percentage of each mortgage payment that you make is applied to reducing the main balance of your loan, so raising the equity in your house. Think of it as a built-in savings plan where you’re gradually buying more and more of your home from the bank.
Let’s now discuss the long term. Your equity can increase significantly as you steadily pay down your loan balance and, ideally, as your property values increase over time. This implies that property ownership has the potential to be a substantial asset for accumulating wealth in the future. When you rent, the concept of forced savings is completely absent, so it’s like turning your housing expense into that. What do you think—good fodder for thought?
The stability and control that come with homeownership are another appealing feature. If you have a fixed-rate mortgage and are a homeowner, you can exhale with ease, knowing that your principal and interest payments will stay the same throughout the term of the loan. Contrast that with the potential for unanticipated rent rises at the end of each lease term. Additionally, having a home gives you independence. Dream of a sky-blue kitchen or a backyard rose garden? Go for it! You don’t have to get your landlord’s permission before making alterations. As a homeowner, you have control over the maintenance, additions, and general aesthetic of your home. The power of being able to customize your house and making it seem truly like “home” goes far beyond the financial aspect of the situation. Therefore, owning a home offers a certain allure, whether it’s stability in your monthly payments or the chance to express your personality through your property.
Let’s change gears a little and talk about renting out your property, which has the potential to make your house a source of revenue. It’s not a route that every homeowner takes, but it can undoubtedly change the game. Imagine you have a spare room, a finished basement, or maybe you frequently travel for work. Through websites like Airbnb, these areas might be rented out for both long- and short-term tenants. The money earned from these rentals can be a sizable money maker, helping to defray the cost of other bills like mortgage payments. Additionally, if you later decide to leave but opt to keep your home, it can develop into a full-fledged investment property. The benefits of homeownership financially are enhanced by the opportunity for rental revenue. Being a landlord isn’t for everyone and has its own set of obligations, but it’s a possibility that undoubtedly gives the typical story of homeownership a fascinating twist.
The possibility of property appreciation is the last topic we’ll cover, but it’s by no means the least significant. Appreciation basically describes the rise in a home’s worth over time. Because historically, property values have tended to increase, real estate is frequently regarded as a secure and long-lasting investment. This is not always a fast process and can be influenced by a wide range of variables, including the condition of the house, the local real estate market, and general economic conditions. However, in most cases, given enough time, your home’s value can increase, meaning that when you sell, you could be able to get more money than you initially paid. A significant factor in what makes homeownership desirable as an investment is the potential increase in value. So you might be sitting on a steadily rising asset as you enjoy your property and possibly make modifications to it. It’s similar to a bonus that becomes bigger the longer you hang onto it! But keep in mind that there are no certainties and that real estate markets can change, so it is always advisable to do your homework and speak with experts.
Now that we’ve extolled the virtues of homeownership, it’s important to balance the discussion by taking certain factors into account before making the decision to buy. You must first evaluate your financial preparedness. This includes being aware of all associated expenses with homeownership, such as property taxes, insurance, upkeep fees, and the monthly mortgage payment. It’s also wise to have a healthy savings buffer for unexpected expenses.
Next, factors like location and the market are quite important. Research the local real estate market, understand price trends, and take into account the possibility for community growth and development, just as you would with any investment.
Finally, consider your personal style and future goals. Do you have any immediate plans to stay in the area? Would you rather have a landlord take care of maintenance or do you like the concept of maintaining a property? You can make an informed choice with the aid of these and other questions.
Although the advantages we’ve covered are alluring, it’s important to make sure you’re choosing the right option for your particular situation because buying a home is a big decision. To find the best fit for you, you must strike a balance between the financial ramifications and your lifestyle preferences. So take your time, do your homework, and the perfect home will be there when you’re ready.
As a summary of the advantages of home ownership, it is evident that the advantages are extensive. The benefits are compelling, from creating equity to enjoying the security and control that homeownership offers. Not to mention the possibility of rental income and long-term appreciation, both of which contribute to the financial attraction. But as we’ve emphasized, this isn’t a choice that should be made quickly or casually. Making the best decision for you will depend on how carefully you weigh your financial preparation, the state of the local economy, your personal lifestyle, and your long-term goals. Remember that purchasing a home is more than just a transaction; it’s a journey and an experience.
If you have questions or are looking to buy or sell a house in Cobb County or the Metro Atlanta area, don't hesitate to get in touch. You can reach us at 404-410-6465 or visit CompleteRealtyTeam.com
