If you’ve been thinking of buying a home, real estate developer Andrew Shader explains that you shouldn’t wait to make your move. Whether you’ll be a first-time homeowner or you’re considering selling your current home and making a new purchase, the decision to move on from your current housing situation brings a lot of opportunities.
It can be easy to get caught in the trap of the waiting game, thinking that holding out for market conditions to improve will open up better deals for you. However, that may not be the best approach.
One of many decisions you’ll need to make during your house-buying journey will be exactly when to make your purchase. To decide whether you should buy now or wait, there are two crucial questions you need to answer thoroughly to make a solid, educated decision:
Predictions are never guaranteed, of course. However, you can (and should) do your due diligence and really dig into how the real estate market is shaping up for the upcoming year to help you decide when to buy.
What Will the House Values Be Like in 2022?
Overall, the value of homes has been increasing steadily. There are three main housing industry entities that predict that housing value appreciation will continue through 2022.
Freddie Mac projects that home values will increase 5.3%, while Mortgage Bankers Association predicts an increase of 8.4%, and Fannie Mae projects an increase of 5.1%. Together, the average appreciation rate is 6.27%.
This means that a home that sells for $250,000 today could be valued at $265,675 by the end of 2022. If you wait another year to buy a home, and appreciation does continue to increase (and it very likely will), you’ll pay an extra $15,675 for the house in this example.
By the End of 2022, What Will Mortgage Rates Be?
The historic lows that 30-year mortgage rates are currently hovering at will not last. As the economy continues to recover, Andrew Shader, along with many other experts, believes that mortgage rates will rise.
The three main housing industry entities (Freddie Mac, Mortgage Bankers Association, and Fannie Mae) predict that mortgage interest rates will rise to 3.8%, 4.2%, and 3.2%, respectively.
The average of those three percentages is 3.7%, which is almost a full percentage point higher than current averages. That 1% increase means an increase of tens of thousands of dollars that you’ll pay over the life of your loan.
The time to buy is now, not only because of rising interest rates and home values. If you wait, you might just miss out on a full year of building equity in the home, too.
Who is Andrew Shader?
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.
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