We all know it’s a great time to sell in this crazy real estate market that has seen statistics like never before. Prices for some homes are going well above the asking price. There have been some wild bidding wars in parts of the country with homes going for over $100,000 over the listing price. In Los Angeles as of March of 2021, approximately half of the homes listed ended up selling for over the asking price.
So what about buying a home? Here are 5 reasons to buy a home now–
1. Interest rates are at an all-time low. As of today, according to Forbes and Bankrate, “the average rate on a 30-year fixed mortgage is 3.06% with an APR of 3.26%. The 15-year fixed mortgage has an average rate of 2.36% with an APR of 2.64%. On a 30-year jumbo mortgage, the average rate is 3.05% with an APR of 3.16%. The average rate on a 5/1 ARM is 2.80% with an APR of 3.91%.” In some areas, your monthly mortgage payment could be less than what you paid to rent.
2. There are fewer buyers in the market so sellers are making decisions very quickly. You can get the deal done!
3. Buying a house is the best investment you can make. It’s a safe long-term investment that will grow with time. You build equity and improve your credit history. Home prices have been consistently rising. They have increased by 3-6% annually for the past 20 years.
4. Owning a home gives you a great deal of freedom, security, and stability (especially with schools.) You can paint your house in any color you choose, decide on how you want to decorate, have pets, etc. You no longer have to be concerned with landlords raising your rent because mortgage payments are fixed for 30 years! You have satisfaction and peace of mind.
5. You will pay less in taxes. You get the greatest tax breaks because you can deduct the interest you pay on your mortgage from your taxable income. Owning a home, more often than not, costs significantly less than renting.