Owning a home is often considered to be a part of the American dream and for a good reason due to the financial benefits that it can offer over time. Although renting can be more affordable, it can cause you to lose the money over the years instead of build equity. Here are a few additional reasons to consider home ownership today.
Mortgage Rates are Low
Although mortgage rates are beginning to increase, they’re still lower compared to past years and decades, making it a great time to invest in the real estate market. Household incomes are also the highest they’ve been since 2008, which makes it affordable to buy a house for many adults. Home ownership is now easier to attain for many people.
Home Prices are Increasing
The prices of homes have continued to steadily increase, which means that rent can go up for tenants. It can become more expensive to rent rather than purchase a house and have a mortgage payment that stays the same for the next 15 or 30 years. Because home prices are also increasing, it makes it a great time to purchase a home because it means the property will likely continue to appreciate over time. Home buying can become more affordable than renting for some individuals.
Inventory Levels are Increasing
According to realtor.com, there has been a shortage of homes since 2015, which has caused bidding wars and buyers making offers that are higher than the asking price. Fortunately, the inventory levels are now beginning to increase, making it easier to purchase a home than in past years. Inventory growth will occur in the middle to the upper-tier price point for those who have more room in their budget with the type of property that they buy. Builder confidence is also the highest it’s been since 1999. Over time, the inventory can even begin to offer some relief for first-time home buyers.
There’s now less competition to owning a home because of the Republican tax plan that has
been created, which offers fewer tax advantages when owning a home. Fortunately, that can benefit some buyers because it means there’s less competition. Renters will also likely obtain a tax cut, which can make it easier to purchase a home.