Over the last year, the average price of homes listed for sale on the Stellar MLS have increased over 8% from this time last year. If you’re in the market to buy a new house, the higher than ever before prices can seem daunting. Is it really worth it to buy a home right now?
The simple answer is: absolutely.
Homeownership provides security in an ever-changing world. When you bought your home, whether a few years ago or a few decades ago, the payments made toward your mortgage have remained consistent through market ups and downs, and are likely significantly less than the current market value for rentals in our community.
Purchasing a home is an investment. While it may not pay off right away, when it’s time to sell your home’s value can be used toward your next property or to provide security for your family.
As property values in Central Florida have steadily increased since the 2008-2010 recession, there’s little doubt that when it’s time to sell, you’ll make some money on your home. This allows a unique opportunity to get into something more suitable for your current lifestyle by using the equity from your current property. Our needs change over time and the home you’re living in may have been perfect five years ago, but is missing key features for your current needs. Whether that is a bigger home with more land, waterfront with a dock, or a smaller property with maintenance included in the HOA fees, it’s easier to get into your dream home despite price tags higher than we’ve ever seen before.
Many buyers are off put by the high prices and are waiting for something to happen to shake the real estate market and make properties more affordable. Their optimism is your advantage.
In recent months, the Central Florida real estate market has survived a global pandemic and economic instability. It is unlikely we’ll see an event like the last recession any time in the near future, meaning prices will likely continue to rise. Prices going up leads to a more expensive purchase down the road.
Interest rates are at a record low. Low interest rates mean more money going to paying off your loan principle, strengthening your investment in real estate quicker. Interest takes up a lot of a monthly mortgage payment and it is more profitable in the long term to pay less interest on an asset that will be worth more in the coming years.
Buying a home in 2020 is daunting. There are questions about market stability and the price of homes aren’t the same as they were last time you purchased. But buying in the Central Florida real estate market is always a good decision.
The high demand for properties in the market gives you the opportunity to make a great return on your investment and get into a new home at a lower interest rate and make more money in the long run.