Buying a North County San Diego home is a big financial decision. And you’ve probably heard plenty of advice about the questions you should ask yourself before buying a home. This could include what neighborhood you want to live in, how many bedrooms you need, and what other amenities are important to you. But there are other, even more important questions you should ask yourself before making such a big financial commitment. Answering these questions before you buy can help you make the best decision about purchasing a North County home.
Will home prices continue to increase?
You’ve no doubt heard on the news that home values have shot through the roof during the pandemic. Buyers are out in force but inventory has lagged. There just aren’t as many homes for sale as there are buyers in the market. Coupled with record low interest rates on mortgages, home prices have increased substantially in recent months. Before you buy a North County home, you should ask yourself — will home prices continue to increase? According to a recent survey by Pulsenomics, over 100 economists and real estate experts believe that home prices will continue to rise over the next five years. If they do, you could pay considerably more for a home in just a few weeks or months as you would right now.
Can I still get a good interest rate?
One big reason that the real estate market has stayed strong despite the pandemic is that interest rates on mortgages have hit record lows. When rates are low, you pay less for your home and have lower monthly mortgage payments. The question you would want to ask is — how long will interest rates stay this low? While no one can say for certain just how long rates will stay low, most experts agree that rates will begin to inch upwards this year and into 2022.
Why do I want to buy right now?
Of all the questions to ask yourself when buying a home, the one you should really take time to consider is why you want to buy a home right now. What is your motivation behind it? Do you need more space? Can you finally afford to upsize? Will it offer you more financial stability? Are you hoping to build equity? Do you want to feel like you have a stake in your community? There are many reasons to buy a home. But take a moment to evaluate your timing to make sure this is the right moment for you.
Can I afford it?
Finally — and we can’t stress this enough — can you afford to buy a North County home right now? Many people dream of homeownership, especially because of the pandemic. But it’s so important to make sure that you are in a good financial position to take on the responsibility. Do you have a stable income? Have you been saving money for a down payment? Is your credit history good? These are all things you should consider before investing time and money in a new home search.