Buying a home is a thrilling, and at times scary, endeavor. It’s the quintessence of the American dream and a lifelong commitment that takes up a huge chunk of your finances and shapes your comfort in the future. That said, purchasing it at the right time is nothing short of liberating, but doing so at the wrong time could mean a future of financial struggles.
So, are you ready to buy a new home now?
Signs That You Need a New Home Right Away
Thinking of buying a new home but not sure whether it’s the right time to take the plunge? Here are six unmistakable signs that it's time to take the plunge.
1. Your Family Has Outgrown Your Current Home
Got a new baby on the way? Planning to move in with a partner, or have parents moving into your space? If you answered yes to any of the questions, you need a new home right now. An expanding or multi-generational family is a blessing, but for the comfort of everyone, you need more space. If your family is growing—or has already outgrown your starter home—it’s time to buy a new home.
2. Your Rent Expenses Don’t Make Sense Anymore
The average nationwide monthly rent for apartments has been increasing steadily since 2016.
Although 2020 has been a little different, there was still a slight increase in rent prices.
For instance, all apartments experienced a 1% increase in rent between the beginning of the COVID-19 pandemic and March 2020. However, renters experienced significant increases in costs between April and May as every apartment type saw at least a 2.1% increase.
This goes to show just how expensive renting can be. If mortgage expenses in your area are on par with your rent costs, then you need a new home right now.
3. Your Maintenance Costs are Too High
Although homeownership allows you to forego rent, it comes with unique costs. For instance, other than property taxes and homeowner insurance, you’ll also incur maintenance costs. Generally, the average maintenance costs are usually between 1% and 4% of a home’s value. However, these costs may skyrocket if your home is more than a decade old. Frequent roof repairs, an energy bill that shoots to the roof due to inefficient insulation, and old appliances that require replacing can push maintenance costs to the four digits. If you’re spending more on maintenance than the mentioned average, you should consider buying another home now.
4. You Need Less Space
Your old home may be in tip-top shape, and some of your most cherished moments might have occurred in it, but when your kids move out, you may find yourself with more space than you need. If this describes your current scenario, downsizing to a smaller home right now would be a wise decision. Why? Well, a bigger house means higher utility and maintenance costs, and everyday household chores such as cleaning can be quite tasking when alone—especially if you are a senior. It can also just feel lonely. This makes buying a smaller new home a smart move.
5. You’re House Poor
As noted earlier, there’s more to homeownership costs than just the initial costs. Your home may not be old, but if home insurance, monthly utility bills, and maintenance costs are taking up most of your income, then you’re considered "house poor."
It’s even worse if you have a mortgage to pay since you potentially risk foreclosure. If you’re currently paying too much in homeownership costs, it’s wiser to sell it and purchase a new home whose ongoing costs remain affordable for you.
6. The Market is Currently in Your Favor
Obviously, 2020 has been no ordinary year. Due to the COVID-19 pandemic, mortgage rates were at their all-time low, as banks and other lenders looked to encourage buyers to purchase homes. However, the inventory was also low, as more sellers held on to their homes due to the looming uncertainty.
Now that a vaccine has been discovered and deployed, things will soon start to go back to normalcy, Sellers will grow more comfortable and investors more open to new construction projects. Also, to encourage buyers to dip their toes into the market again, mortgage rates are set to remain relatively low.
As a result, homes will be more affordable in 2021. These favorable real estate market conditions are a sign you need to buy that dream home now.
Buy a New Home Today
If any of the signs above resonate with your situation, you need to buy a house now. On top of it all, the conditions set to shape the real estate market in 2021 mean there’s no better time to buy a new home than now.
If you’re looking for a move-in ready home in the Dayton area or need guidance on the process, don’t hesitate to schedule a consultation with our team at Oberer homes today.
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