Wednesday, February 10, 2021 / by Bridget Bass
2 Reasons Why You Can't Afford to Wait to Buy
If you're a buyer looking for a home in South Florida, don't wait. Inventory is low with no sign of improvement. Experts say that sales will continue to increase as much as 21.5% by December 2021. If you're a buyer, that means your competition isn't going to go away.
If you're considering waiting until the market cools, all signs say: No! The market isn't going to cool; in fact, it's going to continue strong. Buyers who are financially able to buy now, should. 
Here are two reasons why you can't afford to wait:
1. Home values are expected to rise by 10.5% by the end of the year.
Let's say you buy a house today valued at $300,000. Same time next year, that house may be worth $331,500 or more!
2. Today's mortgage rates are low which means you can afford more.
Rates are starting to rise - which means the sooner you buy, the more likely you are to take advantage of lower rates. Lower rates means you can afford more of a home. For example, Zillow reports that today’s average mortgage rate is 2.68% for a 30-year fixed loan. With a 20% down payment, that means the monthly mortgage would be $861 per month. However, if home values rise 8% and interest rates climb to 3%, that same house would cost $969 per month. Assume 12% instead of 8% rise in value, and that number jumps to over $1000 per month.
Let's say you buy a house today valued at $300,000. Same time next year, that house may be worth $331,500 or more!
2. Today's mortgage rates are low which means you can afford more.
Rates are starting to rise - which means the sooner you buy, the more likely you are to take advantage of lower rates. Lower rates means you can afford more of a home. For example, Zillow reports that today’s average mortgage rate is 2.68% for a 30-year fixed loan. With a 20% down payment, that means the monthly mortgage would be $861 per month. However, if home values rise 8% and interest rates climb to 3%, that same house would cost $969 per month. Assume 12% instead of 8% rise in value, and that number jumps to over $1000 per month.
There is no doubt that the best time to buy is very personal. It is different for everyone; however, it is wise to educate yourself on the circumstances today and what’s expected in the future in order to maximize your buyer power.
If you have questions or would like to start your home search, contact your Premier Listings associate today or email our general inbox at info@premierlistings.com
