Real Estate Matters
By Elisa Jo Eagan
In the last few years, since 2020 and the onset of the pandemic, home prices have dramatically increased, solidifying that owning a home and investing in real estate is still the best investment for building wealth and equity and creating a solid financial future.
Interest Rates: Then and Now
Interest rates hit their all-time historical low in 2020 and 2021 and have increased over the last few years since then. Even with rising mortgage rates moving into 2024, current rates, which are below 8 percent, are still in the historically low range.
Imagine that in 1981, the lower end of mortgage rates averaged 16.64 percent, anc in some cases, as high as 19.5 percent, a staggering all-time high!
At the same time, home prices were much less then, having more than tripled and even quadrupled or more since, creating a wealth and opportunity for those homeowners and real estate investors who purchased a home in the 1980s and held on as the value of property increased. Imagine having purchased a half a dozen or more properties at those prices back then and what they are worth now in today’s market economy. There is proven wealth in owning real estate.
The Strategy: Marry The House, Date The Rate
History often repeats itself. In real estate, interest rates do rise and fall based on market conditions which are always changing, creating opportunity.
A common question is whether or not to wait to purchase “when the rates go back down again,” or when “prices go back down again.” The answer is if you see the home that you want and you are able to own it now, “Put A Ring On It… Buy it Now! Thus the expression, “Marry the House…Date the Rate.” And it is so true.
“Marry the House” that meets your needs and is the best fit in terms of location, school system, number of bedrooms, and the details that you value for you and your family. It is better to own now than to rent, before the home prices increase even more.
Get the best interest rate you are able to get when you are purchasing by “Dating the Rate,” until a better rate comes up, and then you “break up with the rate” and refinance for better terms if it financially makes sense when the opportunity becomes available to you.
If you see the home that you want to buy today, buy it today because if you like it and want it, so will other buyers. Put a ring on it before someone else does. Marry the house and begin to enjoy the benefits of homeownership and real estate wealth, securing a better life for your family and financial future.
With hugs and warm regards.
For more real estate advice and questions, call/text Elisa at 609-703-0432 or see TheRealEstateGodmother.com.
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!”
