
3 Questions to Ask Before You Buy Your Dream Home
If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following 3 questions to help determine if now is a good time for you to buy in today’s market.
1. Why am I buying a home in the first place?
This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.
For example, a survey by Braun showed that over 75% of parents say, “their child’s education is an important part of the search for a new home.”
This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. They are:
- A good place to raise children and for them to get a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of that space
What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
3 Questions to Ask Before You Buy Your Dream Home
2. Where are home values headed?
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in May (the latest data available) was $252,800, which is up 5.8% from last year. This increase also marks the 63rd consecutive month with year-over-year gains.
If we look at home prices year over year, CoreLogic is forecasting an increase of 5.3% over the next twelve months. In other words, a home that costs you $250,000 today will cost you an additional $13,250 if you wait until next year to buy it.
What does that mean to you?
Simply put, with prices increasing each month, it might cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.
The Mortgage Bankers Association (MBA), NAR, and Fannie Mae have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

3 Questions to Ask Before You Buy Your Dream Home
Bottom Line
Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.
Call Us Now To Sell Your Home…
Office: 909.985.9392 or Text Us: 714.657.6634
National Association of REALTORS Data Shows Now Is a Great Time to Sell!
National Association of REALTORS Data Shows Now Is a Great Time to Sell! National Association of REALTORS Data Shows Now Is a Great Time to Sell! We all realize that the best time to sell anything is when demand is high and the supply of that item is...
75% of Homeowners Think Now is a Good Time to Sell Your Home
75% of Homeowners Think Now is a Good Time to Sell Your Home! 75% of Homeowners Think Now is a Good Time to Sell Your Home. The National Association of Realtors (NAR) recently released the findings of their Q2 Homeownership Opportunities and Market...
Buyers Market Pushing Luxury Home Sales to New Highs
Buyers Market Pushing Luxury Home Sales to New Highs We previously reported how a shortage of inventory in the starter and trade-up home markets is driving prices up and causing bidding wars, creating a true seller’s market. At the same time, in the...
2 Steps to Get the Most Money When Selling Your Home
2 Steps to Get the Most Money When Selling Your Home. Every homeowner wants to make sure they get the best price when selling their home. But how to…
This Tree-Lined South Claremont Neighborhood is Hot for Homebuyers!
This Tree-Lined South Claremont Neighborhood is Hot for Homebuyers! [Video] This neighborhood is tree lined with California “Live Oaks”, Crape Myrtle and Elms. Often over
Supply and Demand Problem Plaguing New Construction Builders
Supply and Demand Problem Plaguing New Construction Builders. Last week at the National Association of Real Estate Editors 51st Annual Conference, CoreLogic
Do You Know How Much Equity You Have in Your Home?
Do You Know How Much Equity You Have in Your Home? If you are one of the many Americans who is unsure of how much equity you have built in your home…
4 Great Reasons To Buy A Home This Summer
4 Great Reasons To Buy A Home This Summer. The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer
Things to Consider When Selling Your House Summer 2017 E-Book
Selling Your House Summer 2017 E-Book. Here are five reasons listing your home for sale this summer makes sense. 1. Demand Is Strong
69% of Buyers are Wrong About Down Payment Needs
69% of Buyers are Wrong About Down Payment Needs. Nearly 40% of mortgage industry professionals surveyed believe that a lack of knowledge about the…
If Your Home Hasn’t Sold Yet… Definitely Check the Price!
If Your Home Hasn’t Sold Yet. Definitely Check the Price! Home sales have bounced back solidly and are now at their fourth highest pace over the past year.
5 Reasons Listing Your Home For Sale This Summer Makes Sense
The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority…
What Would You Sacrifice to Save For Your Next Home? [INFOGRAPHIC]
What Would You Sacrifice to Save For Your Next Home? [INFOGRAPHIC] The answer to this question about sacrificing will surprise you…
Six Tips to Sell Your Home Fast and For Top Dollar
These six tips to sell your home fast, for top dollar will improve your property’s appearance to buyers and facilitate a quicker sale.
Can Your REALTOR Answer These Important Questions?
Today, there are many questions your real estate agent must be able to answer to ensure your family is making the right decision. Here are just a few:
#1 Reason to List Your House for Sale, NOW!
#1 Reason to List Your House for Sale, NOW! The chart below details the year-over-year inventory shortages experienced over the last 12 months:
Housing Inventory Challenges Causing Home Sales To Slow
Housing Inventory Challenges Causing Home Sales To Slow: New home prices slowed as builders have started to turn their focus toward single family, smaller
Six Tips To Sell Your Home Fast!
Six Tips To Sell Your Home Fast! Money is well spent on these six areas of your home to enhance the appearance and facilitate a quicker sale