A lot of people are on the fence about buying a home in 2021. Should you make the leap now or wait? I think there are three reasons why you should buy a home in 2021:
1. Low interest rates. According to Bankrate.com, rates will remain low this year due to the economic uncertainty in our global economy amid the COVID pandemic. They expect rates to bounce around that 3% to 3.5% rate. Take advantage of these low rates while you can, because they’ll only go up from here.
2. Your network is greater if you’re a homeowner. According to a 2019 survey of consumer finances, the median homeowner has 40x the household wealth of the average renter. Here’s the great thing about this: Homeowners of all income levels are wealthier compared to their renter counterparts in the same income bracket.
“Homeowners of all income levels are wealthier than their renter counterparts.”
3. The future looks bright as a homeowner. Recently, the home price expectations survey is indicating that home prices will rise continually over the next five years, so you haven’t missed the boat. Let’s say you purchased a $300,000 home today. Based on current projections, the home will be worth as much as $355,000 by 2026. This allows you to gain even more net worth as you simultaneously pay down your home as it goes up in value.
Here in Texas, the expectations are right on line with national ones. We’ll continue to see low rates and higher prices. Whether you’re a first-time homebuyer or looking to move up, we can help you sift through the options to find your best course of action.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
