When it comes time to sell your home, pricing it correctly is essential for attracting potential buyers and maximizing your chances of a quick and successful sale. Pricing too high can deter buyers
To Buy or Not to Buy?
Dated: July 11 2024
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To Buy or Not to Buy?
Navigating Home Ownership in a High Interest Rate Market
Thinking about selling your home and buying a bigger one? Buying instead of renting? You're not alone! Lots of folks like you are wondering about the best time to make a move. Is now the right time? Should I wait? Let’s take a look at some of the questions you might want to ask yourself.
The EUP is buzzing with activity! More and more people are moving to our area, thanks to big projects like the Soo Locks construction project and increases in job opportunities. This means lots of demand for houses, which is driving prices up. Contrary to popular belief, there is not going to be a housing bubble pop.
So…what questions should you be asking?
The first question you should always ask is, “Can I afford to buy a new house?”
I recommend never spending more than 25% of your monthly take-home pay (the dollar amount of the paycheck you deposit.) This formula is a safe bet in helping you decide how much of a housing payment you can comfortably afford (don’t forget to include taxes and insurance in that mortgage payment!)
You may have been asking, “Should I wait until interest rates come down?
You could, but it may end up costing you more! Just hear me out… mortgage interest rates are slowly coming down, but house prices are also increasing. At what point are you paying way more by waiting? You may wait another few years and get an AMAZING interest rate and end up paying $50k - $100k more for a house. Does that make financial sense?
Now you may be asking, “What’s the alternative?”
Many people have decided to move forward with purchasing that new home now at a higher interest rate and securing a good home price before it goes up! Then, in a few years when interest rates come down, they’re planning to refinance at the lower fixed rate. They will have more equity because of the increased housing prices in the market. Even with the fees for refinancing, they will still be ahead.
You may be wondering, “Now what do I do?”
Always do what’s best for you financially, period. Even if you’ve found the home of your dreams, the answer may be “not now.” If, after running the numbers, you can afford it, then talk to professionals. Talk to your banker and get pre-approved. Next, talk to your Realtor. They know the ins and outs of the housing market and are ready to help through the process of buying and/or selling your home. They’ll make sure you understand your options and help you make the best decision for you and your family.
It's Your Move!
Don't let uncertainty hold you back. This may be your chance to make a move towards your dream home!
Happy house hunting!
Tina Thibault
REMAX NorthStar
Sault Ste. Marie, MI
906-440-0525
Tina Thibault
Selling or buying a home is a big deal, and I'm here to make it as straightforward as possible - practical guidance tailored to your needs. Let's cut through the noise and focus on what matters - buyi....
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