Have You Already Missed the Prime Time to Buy a Home in Greater Lansing?

The housing market is looking better every year in Michigan. The average selling prices of homes in sold in Greater Lansing rose 11.4% last year and have continued to rise by 9.7% in the first quarter of this year. If you’ve been thinking lately about whether to stop paying your landlord’s mortgage or just stomach those increased rental rates, the question is — have you waited too long to buy a home?

If you just focus on the rise in prices, then you might think the opportunity has passed you by. Fortunately, there are many more variables involved in making a decision to buy, many of which are environmental.

Factors That Help Determine When to Purchase a Home

1. The fact is that rental rates are going to continue to rise. The demand for quality rentals is strong, and new construction is lagging, so the demand is exceeding supply.
2. The economy in Greater Lansing continues to improve with declining unemployment and increasing job growth. Both of these not only contribute to overall consumer confidence which drives housing sales, but it is allowing Millennials who are now reaching their 30’s to reasonably see home ownership in their future.
3. Mortgage interest rates are at historically low rates and are only expected to rise gradually over the next year.
4. Average selling prices have not reached the highs achieved in 2005-2006, so there is room for price appreciation.
5. Most of the reasons contributing to the desire for home ownership are non-financial and those reasons are alive and well. The desire to participate in the American dream of home ownership is a driving force behind many today.

It’s still a great time to buy a home in Greater Lansing if you intend to live in the home for a few years. Whether or not you qualify financially can be determined quickly in the rent vs. buy calculator or with a visit with a reputable local lender.

Owning a home can lock in your cost of housing for many years to come, it can grow your net worth over time, and it will provide psychic income that will benefit you for as long as you own your home. So as a result, I think the time to buy has not passed you by, but it is time to get on the train before it leaves the station.