Why Now is a Great Time to Buy a New Home
If you’re reading this, you’re probably thinking about buying a home. Most often that means you’ve had a change in your life or your lifestyle. Maybe it’s a new baby on the way, you just got married, or divorced, the kids are gone and the big house is just that, too big, or it could be that you just got that dream job and you can now afford to move up. These are all great reasons to buy a home, and buying, for most, is usually a smart choice.
Think about home for a minute. You generally have two choices, rent one or buy one. When you rent, you pay every month to live in someone else’s home. Granted you have fewer responsibilities for maintenance, but you will never see a return on all the dollars you spend on rent.
Owning your own home means the dollars you spend every month will, over time, accrue back to you in the form of equity in your home. History shows that homeownership has been the primary path to household wealth for most Americans. While you may see a short-term dip in home prices during poor economic times, they rebound quite quickly in Minnesota.
Why buy now?
Since the recession, prices have continued to rebound. Mortgage rates, which had begun to move up have dropped again. Employment in the Twin Cities is strong, and millennials are beginning to reach peak homebuying years (and this generation is larger than any other in history). Safety and energy efficiency in new homes is better than ever before, too. So if you’ve been on the fence, now is the time to take the plunge and find that dream home you’ve always wanted.
Should everyone own a home?
The housing crash and recession made it crystal clear that not everyone can or should own their own home. For those without the needed, regular income, or for those that don’t plan to stay in their home for more than a year or two, homeownership may not be their best solution. Bottom line? Before you make the decision to purchase a home, do your homework. Discuss your situation with a reputable mortgage banker or financial consultant. And make sure you have a workable plan for homeowner maintenance — can you physically do it yourself or afford to set aside the needed budget to have someone else do it.
Owning your own home is still the American dream. It can build wealth for you, it is the place you’ll create cherished memories, it’s your sanctuary in an increasingly hectic world, reflecting your lifestyle, your tastes, and your style. Welcome home!