If you are thinking of purchasing a home, whether it be your first home or a move-up home, I'm sure you're getting different opinions and advice from your family and friends as well as conflicting information. Gather all the facts first. Your reasoning may not even have anything to do with money.
Are you looking for a better location or school district? Looking for a safer location? More space needed? Whatever your reason, the non-financial benefits should be the most important reason you decide to buy a new home or not.
Find out where home values are headed.
According to the National Association of Realtors, the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.
Looking at home prices year over year, CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.
Where are mortgage rates headed? You must be concerned with more than can you afford it. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.
Keep all of this in mind when deciding if it's the right time for you to purchase a home. Only you will know.