Valparaiso Homes for Sale The entire country has been feeling the effects of a booming economy and soaring housing markets, especially in popular cities and destination hotspots. If you already own a property and are thinking about selling your home in 2021, you can get top dollar!

However, if you want to buy a house the things you must consider are much different from when you are selling a home in a soaring market. Let’s investigate the reasons why today is the best time to purchase real estate, and some of the reasons why today may not be the right time to buy.

Why is 2021 a Good Time to Purchase Real Estate?

Many people think that because the prices of homes for sale on the open market are super high, so payments will be high as well, therefore it isn’t a good time to buy.

But that is not necessarily true…

Now, one of the most important factors that drives the monthly payment amount, are the interest rates. Don’t get confused here, the homes price has a significant effect on the monthly payment. Whenever you are considering what your total payment will be, these two portions are called the principal and interest portion of the payment. (AKA, P & I)

It just so happens that the interest rates are historically low in 2021, and this will make your overall payment less, than if the price of the house was less, and the interest rates were higher.

The interest rates are one of the highest contributing factors to the booming housing market we are all experiencing across the country today. Even though real estate prices are up, people can still afford to purchase them, because their monthly mortgage payments are still affordable, thanks to the lowest interest rates, ever!

So, in a nutshell, it is a great time to buy a house!

How Can I Benefit from Low Rates if I Already Own a Home?

If you already own your home and want to lower your current monthly mortgage payments, you can. In fact, people are taking advantage of historically low interest rates, by refinancing their current mortgage, then ever before.

There are all sorts of refinance loans available today. You can contact a professional mortgage broker near you, to find out which refi loans programs you can take advantage of as well. There might be a difference in the rates you are offered from one broker to the nest. Finding a broker you trust, who will provide you with the best loan products, with the best interest rates possible, makes the most sense.

Here are some popular refi options:

There is a huge advantage to current homeowners who want to refinance their mortgages to take advantage of interest rates that may be rising soon.

How Does New Construction Fit into All of This?

With a positive housing market like the one we are within now, new construction thrives. The prices have gone up and now builders have the room to provide brand new houses to buyers at competitive prices, with everything considered. Meaning that new construction homes for sale may still be priced slightly higher than comparable resales, but are the resales comparable?

Let’s take a closer look into how new construction homes compare to resales in the same area.

  1. New homes are built with the most up-to-date building codes and most modern construction materials
  2. Brand new construction homes typically come with a builder’s warrantee which lasts for years.
  3. Many new home builders include cutting edge technology into their houses like Alexa integration, smart appliances, and others

Here are some of the benefits of buying a resale.

  1. Older homes may sell for a lower price than brand new properties
  2. You can fix up an older house with your exact decorative style
  3. Building value in older homes with fixes, and upgrades is very common

If you are considering buying new homes, it is recommended that you contact a professional real estate agent beforehand. This way you will ensure that you are taking advantage of the builder’s incentive programs, perks, and buyers’ programs that can save you lots of money in the long run.

What are The Drawbacks to Buying Homes This Year?

As with anything, there are some drawbacks to purchasing real estate this year. The prices for homes across the board is considered high. In fact, the prices are breaking records across the country. That might be a barrier to some people who don’t make enough money to quality for a mortgage.

The overall price of any property will affect the amount of the monthly payments, but it will also have a huge effect on the down payment needed to quality as well. It doesn’t matter if you must put down three percent, or twenty percent, since either way the down payment will be higher, as the homes price increases.


Hopefully you can see that there are plenty of positive benefits to buying a home this year. Even if you already own your home and do not plan on selling it, you can still take advantage of the low interest rates and refinance your existing loan in favor of lower payments.

Before you think that higher prices mean you can’t afford to buy, do your due diligence to ensure that there isn’t the perfect scenario right in front of your face that you didn’t even realize was there. Mortgage Brokers and Realtors are terrific resources you can hire to advise you on how all of this fits in with your situation and lifestyle dreams.