A Homebuyer's Reflection: Two Key Questions to Ask Before Buying Your Dream Home

If you’re thinking of buying a home, chances are you’re paying attention to just about everything you hear about the housing market. And you’re getting your information from a variety of channels: the news, social media, your real estate agent, conversations with friends and loved ones, overhearing someone chatting at the local supermarket, the list goes on and on. Most likely, home prices and mortgage rates are coming up a lot. 

To help cut through the noise and give you the information you need most, take a look at what the data says. Here are the top two questions you need to ask yourself about home prices and mortgage rates as you make your decision: 

1. Where Do I Think Home Prices Are Heading?

One reliable place you can turn to for that information is the Home Price Expectation Survey from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists. 

According to the latest release, the experts surveyed are projecting slight depreciation this year (see the red in the graph below). But here’s the context you need most. The worst home price declines are already behind us, and prices are actually appreciating again in many markets. Not to mention, the small 0.37% depreciation HPES is showing for 2023 is far from the crash some people originally said would happen.

Now, let’s look to the future. The green in the graph below shows prices have turned a corner and are expected to appreciate in 2024 and beyond. After this year, the HPES is forecasting home price appreciation returning to more normal levels for the next several years.

So, why does this matter to you? It means your home will likely grow in value and you should gain home equity in the years ahead, but only if you buy now. If you wait, based on these forecasts, the home will only cost you more later on.  

2. Where Do I Think Mortgage Rates Are Heading?

Over the past year, mortgage rates have risen in response to economic uncertainty, inflation, and more. We know based on the latest reports that inflation, while still high, has moderated from its peak. This is an encouraging sign for the market and for mortgage rates. Here’s why.

When inflation cools, mortgage rates generally fall in response. This may be why some experts are saying mortgage rates will pull back slightly over the next few quarters and settle somewhere around roughly 5.5 and 6% on average.

But, not even the experts can say with absolute certainty where mortgage rates will be next year, or even next month. That’s because there are so many factors that can impact what happens. So, to give you a lens into the various possible outcomes, here’s what you should consider:

  • If you buy now and mortgage rates don’t change: You made a good move since home prices are projected to grow with time, so at least you beat rising prices.
  • If you buy now and mortgage rates fall (as projected): You probably still made a good decision because you got the house before home prices appreciated more. And, you can always refinance your home later on if rates are lower.
  • If you buy now and mortgage rates rise: If this happens, you made a great decision because you bought before both the price of the home and the mortgage rate went up.

Bottom Line

If you’re thinking about buying a home, you need to know the facts on what’s happening with home prices and mortgage rates. While no one can say for certain where they’ll go, expert projections can give you powerful information to keep you informed. Let’s connect so you have a professional to add in an expert opinion on our local market.

315 Properties
Page 1 of 27
$776,592
Neighborhood: Cassata Lakes Ph I
3
Beds
3
Baths
2,195
Sq.Ft.
2024
Year Built
2
Days on Site
R4908007
MLS
$793,950
Neighborhood: Cassata Lakes Ph I
3
Beds
2F11/2
Baths
2,336
Sq.Ft.
2024
Year Built
2
Days on Site
R4908010
MLS
$799,780
Neighborhood: Cassata Lakes Ph I
3
Beds
2F11/2
Baths
2,336
Sq.Ft.
2024
Year Built
2
Days on Site
R4908011
MLS
$250,000
Neighborhood: Venice By-Way
2
Beds
1
Baths
545
Sq.Ft.
1942
Year Built
3
Days on Site
N6133382
MLS
$700,000
Neighborhood: Venice Woodlands Ph 1
4
Beds
3F11/2
Baths
3,003
Sq.Ft.
2021
Year Built
3
Days on Site
N6133290
MLS
$508,000
Neighborhood: Toscana Isles Ph 6 Un 2
2
Beds
2
Baths
1,670
Sq.Ft.
2022
Year Built
3
Days on Site
A4613211
MLS
$879,000
Neighborhood: Calusa Lakes
3
Beds
2F11/2
Baths
2,760
Sq.Ft.
2001
Year Built
3
Days on Site
N6129195
MLS
Open 6/16
5640 Blue Reef PLACE Nokomis,  FL 34275
$824,900
Neighborhood: Palmero
4
Beds
3
Baths
2,410
Sq.Ft.
2023
Year Built
3
Days on Site
A4613235
MLS
$685,000
Neighborhood: Inlets Sec 06
3
Beds
2
Baths
1,532
Sq.Ft.
1988
Year Built
3
Days on Site
A4613693
MLS
Open 6/15
204 Monet Dr Nokomis,  FL 34275
$495,000
Neighborhood: Sorrento East
2
Beds
2
Baths
1,784
Sq.Ft.
1973
Year Built
3
Days on Site
A4612053
MLS
$199,999
Neighborhood: Terra Cove
2
Beds
2
Baths
1,151
Sq.Ft.
1978
Year Built
3
Days on Site
T3534371
MLS
$515,000
Neighborhood: Sorrento East
3
Beds
2
Baths
2,008
Sq.Ft.
1978
Year Built
3
Days on Site
A4613961
MLS

Post a Comment