We’re already halfway through the year, and if buying a home was one of your resolutions last January, you might want to consider acting or deciding on that goal now. You might’ve heard news of improving statistics in the housing market in the last few months, but numbers and studies aside, remember that the most important thing to consider in buying a home is if you think you need and can afford one now while also thinking of your future plans.
To quote Benjamin Feldman of Credit.com:
“For example, if you have a stable career and a job that pays enough to cover your living expenses (with some leftover for emergencies/retirement), and in addition you plan on being in the same place for 3-5 years or expect you could rent the house out if you were to move away, then you are probably in a good position to consider buying a house in 2013. On the other hand, if you can’t imagine giving up your mobility, if you can’t count on having a steady income, or if you have substantial credit card debt or student loan debt (or are struggling to pay your bills each month) then it might not make sense for you to buy a home at this time.”
If you’re one of the lucky ones who have nothing much to worry about financially, then it’s time to focus a little more on the numbers. It’s the interest rates that take up the majority of the equation. Obviously the lower the interest rate the better, especially if you can lock-in one with a fixed-rate mortgage than an adjustable rate mortgage.
As you can see from the chart above, rates are lower by 3.5% from the last three decades. It’s hard to say if these numbers will keep going lower in the next few years, but we also have to consider the home prices before we seal the deal.
For the past five years the housing market has crashed along with the global financial crisis since 2008, but as of the moment on a nationwide scale, prices are still much lower than they were during the peak of the housing bubble. Again, the winds could change anytime, but you could learn to get a better idea of how the market is going if you look up housing price trends on real estate sites like Trulia or Zillow.
Consider your options, check your finances, and do a little bit more reading. A home is one of the biggest purchases you’ll ever make in your life. Experts will say that 2013 is a good year for home buying, but it all boils down to you.
Let’s all keep working hard, everyone!