Real Estate Matters
By Elisa Jo Eagan
We all wish we had a “magic crystal ball” to predict how our future will unfold, especially when it comes to the real estate market in 2025 and beyond.
Over the last few years we have witnessed home prices dramatically increase and solidify, demonstrating that owning a home and investing in real estate remains one of the best ways to build wealth, equity, security and a strong financial future.
Mortgage interest rates hit their all-time lows in 2020 and 2021. Since then, they have risen steadily, with current rates hovering around 7%, depending on your specific financial circumstances.
Imagine this: in 1981 the average mortgage rate for purchasing a home was 16.64%. In some cases, rates were as high as 19.5% – the highest in history. Yes, home prices were much lower then, but the value of homes has since tripled, quadrupled, or even increased tenfold.
Those who purchased homes in the 1980s and held onto them have experienced significant increases in property value. Imagine buying a half dozen properties at 1980s prices and seeing their value in today’s market. There is undeniable wealth in owning real estate.
Given that history tends to repeat itself, real estate interest rates will rise and fall with economic conditions. Expect the demand for housing to remain strong in 2025 as new homes continue to be built to meet the needs of our Shore Local area.
Many people wonder, “Should I wait for rates or prices to drop before buying?” The answer is simple: if you find the home you want and are able to afford it now, buy it now.
This is where the phrase, “Date the rate, marry the house” comes into play. “Marry the house” that meets your needs, whether it’s the right location, school system, number of bedrooms, or the features you value most. When you buy, you “date the rate,” taking the best available interest rate at the time, and refinance for better terms when the opportunity arises.
If you see the home you want today, buy it today. If you love it, chances are other buyers will, too. “Put a ring on it” before someone else does and “marry the house!”
It’s better to own now than to rent, especially before home prices rise further. “Marry the house” and begin enjoying the benefits of homeownership, building wealth and securing a better future for you and your family.
For More Real Estate Questions, Information and Advice Contact Elisa Jo Eagan “The Real Estate Godmother” (609)703-0432 and Remember…”There’s No Place Like Owning Your Own Home!”
