Waiting to buy a home?
Hello, Keith Renno here. Welcome or welcome back to this channel, wherever you are viewing this video. Thank you for joining me. See below the transcript for the video presented above.
Would like to discuss affordability. And yes, there has been a substantial increase in home prices, interest rates in most areas across the US. We’re talking 20, 40, 50% on home prices, as well as interest rates. So the cost for that same piece of property has tremendously gone up in the last year or two. I think, regardless as to what we’re buying nowadays, prices have gone up in the last year or two. Established, we know that now.
Unless you have data that strongly supports that things are going to be going down in your area in terms of home prices, which there are some areas in the US that I feel will have some softening in the real estate market, but in most areas due to supply and demand, I got a few other videos that speak to that, or reach out any time, happy to chat about your area and the stats and numbers going on there, but in most areas, due to supply and demand, I do not foresee depreciation. I don’t foresee home prices going down. I think we won’t see as much appreciation. We’re not going to see this 10, 20% business that we’ve seen over the last few years, but some steady appreciation, two, three, 5%. Historically, in the real estate market, what we would call more of a normal level of appreciation.
So things are high. Maybe you’re a buyer and you’re saying, “Hey, I’m going to hold back. I’m going to wait. I’m going to wait for things to come down. Things have just gotten too expensive.” I strongly encourage you to really ask yourself the question, really look at the data, talk to experts, talk to people like and trust in your area, reach out. If you don’t know anyone that you yet know, like, and trust, then start making calls. And know that, us in the real estate field and the real estate community are here to serve you. So don’t be shy reaching out to folks in the industry.
But again, you need to get educated on your area because if not now, when? And what is the alternative for you? And I say you because everyone is in an individual situation. If you’re able to live with family in a guest home, on a big piece of property, no one has any timeframes. They’re not going to charge you a whole lot for rent. You see that being a long term thing. Hey, may not make sense for you to buy. You have a pretty good situation there. And hopefully, you’re able to put a lot in the bank and save money in other areas. But for most of us, that is not a realistic scenario. So if not now, when? And what are the alternatives?
In most areas, rents have as well gone up and are continuing to increase. We have a lack of inventory in the rental market, as well as in the actual purchase market. So if rents are expensive in the area, and again, don’t just look out the next 12 months, but what is your situation or what’s your comfort level over the next three to five years owning versus renting. Renting, where you’re having a landlord potentially increase the cost of your rent. You have some instability there where, again, most leases are only for 12 months. So what’s going to happen at the end of that lease? Compared to owning, where you’re fixing your cost of living, you’re able to make it your own. You want to make improvements for you to enjoy. You’re able to. You want to make improvements that you feel will add value to the property, some sweat equity in the property. You have that opportunity with owning compared to renting.
So absolutely, things have gone up. Absolutely, affording a home in today’s market is expensive, but I don’t foresee that changing. And if not now, when? And what are the alternatives? And your individual situation, as well as the area that you’re buying in, there’s going to be some variables there. And that’s why we need to have that conversation with ourselves, and then make sure we’re understanding the area, talking to experts, and hopefully making informed choice that’s going to best serve you, again, not for the next 12 months, but what’s going to best serve you, your family, children if they’re in the picture for the next three to five years and going forward.
Have any questions, want to chat about real estate, mortgages, I’ll talk to you all day long, any day of the week about those items, or reach out anytime, or again, reach out to folks you know, like, and trust. And make inform choices. Take care.
I hope you found this post helpful and if you are currently looking for real estate, I wish you the best of luck with your search. Please feel free to scroll down and leave a comment.
Senior Loan Originator
Over the past 15 years as a mortgage professional, closing on average 150 loans per year, I have gained a wealth of knowledge and experience about the mortgage industry. My goal with this website is to give you just the INFORMATION you need about mortgages with ZERO sales pitch. I hope you find my posts of value and share it with 1 other person who might find value in it as well.