With so much economic uncertainty and almost everything costing more these days, is it still a good time to buy a house?
For most people, yes!
Buying vs. Renting
Home prices have trended up over the past several years, but so have rent prices. While there are personal reasons why you may choose to rent instead of buy, it almost always makes better sense to buy a house and build your own equity.
Realtor.com identifies the current Fresno real estate climate as a buyers market. That means the supply of homes on the market is greater than the number of buyers making offers. And that means that buyers may have a slight advantage right now.
Mortgage Interest Rates
Even with the recent increase in mortgage interest rates, the rates are still relatively low. If mortgage rates continue to rise, waiting to buy a house would cost you more in the long run. If they drop in the future, you can always look into refinancing down to a lower rate.
28/36 Budgeting to Buy a House
Proper budgeting is always important, and even more so in times of economic uncertainty. Experts at NextAdvisor recommend that “your mortgage payment shouldn’t be more than 28% of your monthly pre-tax income and 36% of your total debt.”
You should have an honest discussion with your realtor and your mortgage lender to be sure that you buy a home that you can actually afford.
Real Estate as an Investment
Real estate is considered a good long-term investment because it’s a tangible asset and home prices have historically risen over time. That is still true today. However, talk to your financial and tax professionals to make sure it fits into your investment strategy.
Looking to Buy a Home in Fresno or Clovis?
If you’re looking to buy a home in Fresno, Clovis or the surrounding area, the local experts at Foxen Realty are here to help!
Send us a message or call us at 559-490-0207 today to start the conversation.