If you are considering purchasing a home in Dallas this spring, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your situation and what is currently happening in the Dallas real estate market.
Below are three questions you need to consider before purchasing your next house.
1. Why am I wanting to buy a home?
Put the finances aside for a minute. Why do you want to begin going through the process of purchasing a home? For many, the reason doesn’t have anything to do with money.
According to realtor.com, 73 percent cited that they wanted to buy a home in a good school district and that was their reasoning for wanting to move.
This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home include:
· A good place to raise children and provide them with a good education
· A place where you and your family feel safe
· More space for you and your family
· Control of that space
So, what does owning a home mean to you? What non-financial benefits will you and your family gain? The answer to that question should be the deciding factor.
2. Where are home values headed?
According to the Dallas Morning News, home sales rose slightly in March, but the 1 percent year-over-year gain in sales wasn’t enough to erase the decline from earlier in the year.
Real estate agents in the North Texas area sold over 21,000 houses during the 2019 first quarter, which was down from the 2018 first quarter record sales. As of right now, sale prices in the area are up a small 1 percent to $251,000, and according to economist, they are not really going to come down.
What does that mean to you?
Simply put, with prices increasing, it may 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.
Freddie Mac, Fannie Mae, the Mortgage Bankers Association and NAR have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:
Information for this post came from Keeping Matters Current and The Dallas Morning News.