Important Questions to Ask Yourself When Thinking About Buying a Home

As you contemplate purchasing a home this year, it’s likely you’re more attuned to the housing market’s fluctuations than usual. Your sources of information are diverse, ranging from news outlets and social media to discussions with real estate agents, friends, and family. Topics like home prices and mortgage rates are probably frequent in these conversations.

Here are two critical questions to ponder in your decision-making process, supported by data to help navigate through the myriad of information.

1. What are My Predictions for Home Prices?

A credible source for home price forecasts is the Home Price Expectations Survey by Fannie Mae, which gathers insights from over a hundred economists, real estate professionals, and market strategists. The latest survey indicates that experts anticipate a continued rise in home prices at least until 2028 (refer to the accompanying graph):

Understanding this trend is vital. Although the rate of appreciation might not match the heights of recent years, the key takeaway is the expected consistent rise in prices for at least the next five years.

This upward trend in home prices, even if moderate, is beneficial not just for the market, but for potential buyers like you. Purchasing a home now could mean an increase in its value and a growth in home equity over time. Conversely, delaying your purchase could result in higher costs in the future, as per these projections.

2. What are My Expectations for Mortgage Rates?

In the past year, mortgage rates have surged due to economic uncertainties and inflation. However, there are positive signs for the market and future mortgage rates. With inflation showing signs of moderation, mortgage rates typically decrease in response, which has been observed recently. Furthermore, the Federal Reserve’s indication of halting rate hikes and possibly reducing rates in 2024 has bolstered confidence in a potential decrease in mortgage rates.

Danielle Hale, Chief Economist at Realtor.com, states:

“. . . mortgage rates will continue to ease in 2024 as inflation improves and Fed rate cuts get closer. . . . a key factor in starting to provide affordability relief to homebuyers.”

According to a National Association of Realtors (NAR) article:

“Mortgage rates likely have peaked and are now falling from their recent high of nearly 8%. . . . This likely will improve housing affordability and entice more home buyers to return to the market . . .”

While it’s impossible to predict mortgage rates with absolute certainty, the recent decline and the Federal Reserve’s latest policy decisions suggest a positive outlook. Despite potential short-term fluctuations, overall affordability is expected to improve as rates decrease.

Bottom Line

When considering a home purchase, staying informed about the expected trends in home prices and mortgage rates is crucial. While precise predictions are challenging, having up-to-date information aids in making a well-informed decision. Connect with the local market experts at Countryside Homes NJ and RE/MAX Select to keep abreast of the latest developments and understand why this is promising news for prospective homebuyers.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!