Thinking about buying your first home?

Here’s why it could be a great idea!

Buying your first home can be both exciting and a little scary, especially with today’s mortgage rates. But don’t worry! Here are two good reasons why, if you’re ready, buying a home could be a smart decision.

1.) Home Values Typically Go Up Over Time. You might have heard mixed things about home prices lately, but here’s the good news: in general, home prices tend to rise over time. According to data from the Federal Reserve, home prices have been steadily climbing for the past 60 years, with a brief exception during the 2008 housing crash. This means that buying a home now could be a great investment for your future.

When you buy a home, you’re not just spending money — you’re building equity. As home prices go up and you pay down your mortgage, your equity increases, which can significantly boost your net worth. The Urban Institute emphasizes:

“Homeownership is critical for wealth building and financial stability.”

2.) Rent Keeps Rising in the Long Run. Another reason to consider buying a home is that rent keeps going up over the years. While renting might seem cheaper right now, rent tends to increase every time you renew your lease. According to data from iProperty Management, rent has been consistently rising for the last 60 years.

To avoid the cycle of rising rents, buying a home with a fixed-rate mortgage can stabilize your housing costs. This means no more worrying about your rent going up. Your housing payments become an investment in your own future, rather than just paying your landlord.

Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), advises:

“If a homebuyer is financially stable, able to manage monthly mortgage costs, and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”

Bottom Line

If you’re tired of your rent going up and want to explore the many benefits of homeownership, talk to a local real estate agent to explore your options. Buying a home could be the best decision you make for your financial future.