The real estate market began to shift from the buying frenzies and stark seller’s market we saw at the beginning of the pandemic. Interest rates began to climb in January of 2022 and quickly rose well above what many financial analysts were predicting. Rising mortgage rates paired with increasing home values have bumped some homes above affordability for some homeowners.

What does this mean for a home buyer hoping to purchase a home they truly love and never move again? A home that has all of their wants and needs for now and into the future, a forever home.

Buyers Should Ask Themselves Two Questions When Considering the Purchase of a Home they Hope to Stay in Long Term Right Now

How Much Are You Willing to Adjust Your Wants and Needs?

Homes that buyers may have seen themselves settling into for the rest of their lives with nearly every attribute they are looking for that may have been within an affordable reach are now just beyond the confines of an affordable budget. What may have worked out to be a $1,200 payment a few years ago is now working out to be $2,000+.

Finding that home that is just right where you never want to move again is also made difficult with a continued low inventory. More and more homes are coming to the market but still not at the numbers to balance out the market. This is leading some buyers to ask the question of changing up their home search parameters to get into a home.

Instead of searching for a five-bedroom home, maybe a three-bedroom home with a bonus space would work out. Or maybe you are hoping to have a large entertainment room in addition to the main living. Some people may decide they no longer need that extra bonus space. While others may concede to purchase a bigger home that works better for them now that is under their budget and continue to save for that home they have always dreamt of.

Should You Wait it Out Until Your Dream Home is Back on the Market?

It is not uncommon for many homebuyers to purchase what is considered a starter home. This gets someone “started” in their homeownership journey to build equity and wealth and be able to put a better down payment on their next home (hopefully that dream forever home). This allows a buyer to gain some traction with homeownership and the ability to qualify for a larger mortgage on a more expensive home in the future.

It is good to keep in mind that with any home purchase you want to make sure you plan to live in the property long enough to actually make a decent profit on the home to enable you to pay off the current mortgage, pay taxes, and have a large down payment to make a larger home purchase attainable and affordable. Most financial advisors suggest that you plan to live in any home for at least five years.

Maybe you already own a starter home but that dream forever home is still just beyond your reach, even using the equity from the sale of your current home. You may decide to hold off and continue with your current affordable home payment and wait for more homes to become available that fit your forever home profile.

It is possible to find a forever home in today’s market, it may require some adjustments in what you really need and want, or it may require saving away just a bit more money to make a bigger down payment to get the best mortgage terms possible.

For more information on purchasing a home in Coachella Valley and surrounding areas contact us any time.