Are you planning to buy a home for the first time in 2023? Are you eyeing one of the pre-construction homes in the market? You might be worried about what is happening in the market and what you have heard. Let nothing worry you anymore because there is always a way out. Even as interest rates seem to go up, you will surely be able to buy a home for yourself and your family. If you have been considering abandoning your plan, don’t do that because increasing interest rates won’t stand in your way. The following are the benefits of buying a home when the interest rates are rising.
1. More homes at your disposal
If you thought buying when the interest rates are increasing is always bad, then you are wrong. You need to try it this 2023, especially if you are purchasing a home for the first time. As you know, lower interest rates usually prompt many potential buyers to get into the market and buy. They typically see that as an opportunity to grab their dream homes. The demand is always high at that time because the rates favour many people. New construction homes usually don’t stay for long on the market during this period. At that time, you need to be alert and scramble with other buyers or else you will miss the house you are looking for. During times like this, you will see people paying more than the asking price. Real bidding wars are experienced during such times.
When it comes to increasing interest rates, the situation is different. When the rates are going up, fewer people will tend to buy. The higher interest rates will lower the number of home buyers who qualify for mortgage loans. This will directly impact the market since those who won’t qualify for the mortgage will keep off the market. When many people are not able to buy, it means that more homes will be available in the market. More inventory will be witnessed in the market. Increasing interest rates and more home inventory will put a lot of houses at your disposal. It is at this time that you can make good use of the opportunity and get your home for the first time.
As the interest rates are increasing, just keep in mind that this is what will likely happen. Therefore, you have to get ready to buy a home because many new construction homes will await buyers like you.
2. Less buyer risk
An investment in real estate can come with its risks that you had not even thought of. As much as you are supposed to be ready for any risk as an investor, risks are a threat. It is always scary to think of risks that might befall you in your investment journey. Higher interest rates promote the existence of contingencies. Since higher interest rates will discourage most buyers, the few left will not have to worry about waiving contingencies. They will present their offers with contingencies to the seller because they know the seller will eventually pick their offers. The sellers will pick their offers because there are few buyers in the market. The most important contingencies are appraisal and inspection. Since, as a buyer, you will have the liberty of demanding inspection and appraisal, the possibility of risks will be lower. This inspection and appraisal will be conducted before you seal the deal. Doing this will make you more than sure of what you are committing yourself to.
You will not have to worry so much about the risks that can come along with an investment in real estate. Be that smart investor by investing when others think it’s not right to invest. At the end of the day, it’s you who will gain while others regret why they didn’t invest. If you want to invest in a pre-construction home, you know where to run to. Of course, you will run to G1 Homes because they already have what you need. That is where the best deals are found, so do not waste time.
3. Lower prices
When the interest rates are low, housing prices tend to be high because of the high demand for housing. Many people find it comfortable to buy when the interest rates are low, pushing the demand for housing up to the ceiling. During times of lower interest rates, the market is crazy. You can easily miss out on the best home you have wanted to buy. Investing in real estate during this time can be a bit challenging. You have to brace yourself for tough bidding wars that might be ahead waiting for you.
Increasing interest rates is what usually comes in handy as far as rectifying this situation is concerned. When the interest rates go up, the number of home buyers reduces because several of them can qualify for mortgage loans. Those buyers who are priced out usually create space and make it comfortable for the buyers who remain. Competition for homes, therefore, goes down; hence the pressure on housing prices goes down as well. When this happens, lower prices will eventually be witnessed. With lower prices, you can be able to easily purchase the home you have been admiring for a while. Y
You can now start thinking of investing in real estate if the increasing interest rates scare you. Just be ready for 2023 because it’s the year you will purchase your home despite increasing interest rates.
Conclusion
You now understand why it’s good for you to proceed with buying a home despite increasing interest rates in 2023. Rising interest rates will no longer be an excuse, even if you are a potential first-time home buyer. You just have to go on with your plans because you know the information or reasons as to why you should proceed. So let 2023 be the year when you will have your own home for the first time. Nothing will stand in your way this time round. If you are so interested in one of the pre-construction homes, G1 Homes are there to offer you the best deal. You will indeed be surprised by what you will get from them.