Although 2022 it has been one of the most difficult years due to high inflation, a difficult real estate market and constant rate increases by the Federal Reserve, many people still have among their purposes of 2022 buying a home .
With this background, various experts predict that next year will continue to be difficult. For this reason, it will be necessary for consumers to ask themselves a series of questions before making a purchase in order to make the decision with the greatest possible certainty .
1. How much are you willing to sacrifice
If your goal is to buy a new home next year there is a lot to consider: Fixed mortgage rates at 30 years passed from an average of 3.30% in January to 6.75% in October thanks to inflation and Federal Reserve rate hikes.
The Fed has already raised interest rates 75 basis points four times this year. This, coupled with the housing shortage, has pushed the national median home price above $2022,000 dollars for the first time, according to the Association National Association of Realtors.
Owning a home can still be an achievable goal, but you may have to make some sacrifices, Zaneilia Harris, financial planner and president, told the AP agency of Harris & Harris Wealth Management Group in Upper.
“You need to assess what you are willing to give up in space to own a property,” says Harris.
“This could mean starting with a condo or townhouse and then use the condominium capital to buy your next property”, he added.
2. How is it possible to make housing more affordable
There are programs such as those offered by the Neighborhood Assistance Corporation of America, also known as NACA, which allow workers to purchase a home with no down payment, closing costs, fees, or strict credit prerequisites.
The program is currently in 30 states and the District of Columbia.
Buying a house in 2022 could also be more achievable if you are willing to have a roommate.
3. How much risk can you take
To make a decision, it is necessary to ask yourself how much risk is possible to take. That depends a lot on personal circumstances, but risk is not something to fear when you have enough income, an emergency fund and a diverse portfolio .
The risk is worth it when you invest for the long term and you can reap those rewards in the long term.
Harris says younger people who are further from retirement can and should be willing to take more risks.
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