Four Reasons Why Waiting To Buy Might Cost More Money
While the recent increase in interest rates might tempt you to put your home search on pause, there are reasons why now might be the right time for you to buy. In fact, trying to time the market perfectly might not work out in your favor and might end up costing you.
1. It Pays to be a Homeowner
The more time you put off becoming a homeowner is more time you spend filling your landlord’s pockets, instead of building long-term wealth in the form of equity. Furthermore, U.S rent prices are rising four times faster than the rise in income nationally, and rent in Sioux Falls has been up a shocking 19% since last year. No one knows for certain how long these trends will continue.
In other words, If you have the money saved for a down payment, you will likely save money by having a fixed mortgage payment versus potentially falling victim to the rapidly changing rental market.
2. The Current Interest Rate Is Not Actually THAT High
While you might not be thrilled about the current interest rates, it helps to put them into perspective. These interest rates don’t look great compared to the historic lows of 2020, but for the majority of the 1970s to early 2000s, rates averaged above 8% and in many cases well over 10%. From 2000-2008, average rates were above 6%. Hopefully, now the current rates don’t seem quite as bad.
Also, you can always refinance in the future if the rates become lower than they are now.
3. Sioux Falls, SD Is A Hot Relocation Spot
We firmly believe Sioux Falls is one of the US’s best-kept secrets. But the secret might be starting to get out. Major metros like New York, Chicago, and Los Angeles have all experienced population declines since the beginning of the pandemic. Sioux Falls made the top 50 list of metropolitan areas which experienced the largest population growth rates in 2021. Sioux Falls beat out cities like Phoenix in population growth rates! 74% of this growth came from people relocating from areas across the country to settle in Sioux Falls.
In other words, there’s more people from outside the market looking at the house you’re interested in.
4. Remote Work is a Game Changer
The great reshuffling of remote workers moving is expected to continue. In fact, a study by Upwork states that 19 million Americans are still planning to move because of their work-from-home job. Many remote workers are seeking locations to live that have a slower-paced lifestyle close to nature with a lower cost of living than in the larger cities they’re living in.
This means that the competition for property in Sioux Falls might just be getting started. Don’t get priced out of your or pay even more for your dream home in Sioux Falls in the future by waiting for the perfect moment to buy.
Ready to Buy?
If you think you’re ready to take the leap into homeownership contact us at 605-376-6780. The talented team at Amy Stockberger Real Estate knows the local market conditions and will help you make the best decision.
Sources:
https://www.rocketmortgage.com/learn/is-now-a-good-time-to-buy-a-house
