Make a wise investment in your future by buying a home.

Are you unsure whether to buy a home right now? Mortgage rates may seem high, but here are two great reasons why it may still be a good time to become a homeowner.

Home Values Appreciate over Time

Home prices have been confusing over the past two years. They dipped slightly in late 2022, but this year they have been rising at a normal pace. This is good for the housing market. While looking at home prices over a short period of time can make it seem like they are unpredictable, history shows that home values rise over the long run.

According to Federal Reserve data, home prices have risen steadily over the past 60 years, with a brief exception during the housing crash of 2008. Overall, home values have consistently increased over the long term.

Rising home values make buying a home a more attractive option than renting, because as prices increase and you pay down your mortgage, you build equity. Over time, this growing equity can increase your net worth significantly.

Rent Keeps Going Up Through the Years

Another reason to consider buying a home instead of renting is the constant rent increases. If you've ever felt the pain of your rent going up year after year, you're not alone. Rents have been rising steadily for the past six decades.

Owning a home allows you to set your monthly housing costs in stone and say goodbye to unpredictable rent increases. This stability is a major advantage.

Ultimately, your housing payments are a form of investment, and you have a decision to make: Do you want to invest in your own future or in your landlord's?

When you buy a home, you are building equity, which is a valuable asset that you can build on over time. When you rent, you are essentially throwing your money away, because you are not building any equity.

When you factor in home values consistently rising, plus the opportunity to get relief from never-ending rent hikes, homeownership can be a path to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), puts it: 

Considering the steady rise in home values and the opportunity to escape rising rent costs, homeownership can be a pathway to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), puts it:

“If a potential homeowner has a stable income, can afford monthly mortgage payments, and is prepared to cover the costs of home maintenance, then buying a home is a wise financial decision.”

Bottom Line

Even with high mortgage rates, homeownership offers more benefits than renting. To avoid rising rents and take advantage of long-term home price appreciation, contact a local real estate agent to discuss your options.