A special guest post from our friends at Innovative Building Materials.
The real estate market has been a hot topic of conversation lately. Many people are urging potential home buyers to wait to buy a home because of the high home values and limited resell home supply. However, we are here to tell you that now is actually a great time to purchase a home despite home prices. Here’s why.
Low Mortgage Rates
Right now, rates are very low, which means that you can save on your mortgage. Lower interest rates translate to lower monthly payments and a lower cost for the home. Even tenths of a percent can make a difference. Additionally, most mortgages are fixed rates, which means that you’ll be able to lock it in without worrying if rates go back up. The rates right now are the lowest we have seen in years but they are always bound to go back up.
Cities are Changing
There are rapid changes happening in cities across the country. From gentrification to school districts implementing higher standards and people migrating, bringing new growth to previously less desirable towns. This means that purchasing in these types of cities sets you up for future equity in your home as the communities grow.
When you buy into cities that are less desirable but on the brink of new beginnings, you often get a lower rate than once the city becomes more popular. As home rates in the area rise, you’ll rack up equity since you are locked in at a lower rate.
Innovative Building Materials in New Homes
Now is a great time to buy because of the innovative materials being used to build new homes. Some of these materials include composite slate roofing tiles, faux wood plank flooring, metal plank siding, and ICF construction. Let’s take a look at why these are beneficial aspects of a new home.
Composite slate roofing tiles last much longer than traditional asphalt roofing and withstand almost any climate. Faux wood plank flooring gives you the look of real wood, while being easier to clean, coming in a variety of styles and just as durable. Metal plank siding provides a great layer of protection because it is more secure, holds up to the elements, and is relatively maintenance-free. ICF construction is a method of construction using insulated concrete forms, which provide energy efficiency, additional structural integrity and acoustic insulation among other benefits. These innovative materials are perfect to ensure the longevity of your new home.
Remote Purchasing and Tours
When lockdowns began, everyone quickly realized that a lot could be done digitally. Now more than ever, you can buy a home from the comfort of your own couch with 3D virtual tours and remote closing. This is convenient for those who can’t take a lot of time off work, are looking to move across a long distance and for high-risk individuals that don’t want to be out and about.
Some people will still want to see homes in person, which can be arranged, but there is an option to close virtually, creating a hybrid effect. Given the last 18 months, technology has created more flexibility when it comes to the logistics of real estate.
New Home Construction is High
New home construction is booming. To accommodate population growth, residential home developers are putting up new homes left and right and oftentimes, building them faster than they can sell them. This is a benefit to those looking to buy a home right now for two reasons.
For one, you can get some new homes for the same price as resale homes. The second reason is with the recent lockdowns, developers are looking to recuperate cash flow to continue their endeavours, which means that they are offering incentives to buy now instead of later. Additionally, as we mentioned above, these new homes are the ones being built with innovative materials.
Less Competition
Unfortunately, there has been a lot of layoffs and job insecurity, which has taken a lot of buyers off the market. This is especially true for first-time home buyers. If you have made it through the uncertainty of the last year and are still a qualified buyer, there is a lot less competition if you buy now.
Don’t Wait, Buy Now
Many people have been telling you to wait until the housing market is more catered to buyers and home prices fall; however, there are several great benefits to buying a home now so don’t wait. For your mortgage, Homewise is ready to get you approved for the house of your dreams. Get pre-approved in just five minutes and start your home search today.
Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.
