If you're thinking of buying a home on Hilton Head Island, there are three important questions to ask before you purchase. Let’s see if it’s ACTUALLY a good time to buy here in the Lowcountry.
3 Questions You Should Ask Before Purchasing In Today’s Market:
Why am I buying a home?
This seems like the most important question to answer before a home purchase on Hilton Head Island or in Bluffton. Put finances a side and just figure out why you even began to consider purchasing a home. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:
- 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 non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
Where are home values headed?
When looking at future housing values, Home Price Expectation Survey provides a fair assessment. Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. Here is what the experts projected in the latest survey:
- Home values will appreciate by 4.1% in 2015.
- The cumulative appreciation will be 18.1% by 2019.
Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 10.5% by 2019.
So what does that really mean for you and your family? The chart below was made using Home Price Expectation Survery's predictions:
If the experts are right and you were to purchase a home by January 2016 for $250,000, that home would appreciate by over $34,000 over the next four years! Homeownership is one of the best ways to build your family’s wealth.
What is the forecast for mortgage interest rates?
Buyers should not just be concerned about prices. Mortgage rates play a huge role in the decision to buy real estate on Hilton Head Island. The ‘long term cost’ of a home can be dramatically impacted by an increase in mortgage rates. The Mortgage Bankers Association (MBA), the National Association of Realtors and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months as you can see in the chart.
Only you and your family can decide if now is the right time to purchase property in the area. Taking a few moments to address and answer these questions should be helpful in making that decision.
When you’re ready to purchase, we would love the opportunity to discuss the real estate options on Hilton Head Island and in Bluffton. We’re just a phone call away. 843.686.4002