TEMPLE, Texas — Home prices skyrocketed last year and then interest rates went their highest in 20 years. So why would you purchase now?
Well, home prices have dipped between 10 and 15 percent from their peak a year ago, depending on where you live. Interest rates also seem to be trending down from the highs we saw just recently. Don't be scared by that 7 percent rate, if you rent your interest rate is 100 percent.
Rolandus Johnson told 6 news, "personally for me it's always an opportunity if you can gain an asset! And a home is going to be an asset for you probably one of the biggest things that you're going to buy. So, if you can gain an asset by all means do it. And that's where a lot of Realtors have been their message so far has been if you can get the asset by all means get it. Whereas rent is more of a liability in that asset versus liability conversation."
With higher appraisals on their properties, property owner are passing those higher tax costs right onto their renters. Remember if you have a fixed interest rate for 30 years, that fights inflation, the kind you'll see when the rest goes up.
‘Rojo’ says, "Rent right now is really, really, and I will use it outright now is really outrageous, it's crazy, you know so if you have the budget and if you have the means to buy a home I know that interest rates are up compared to the previous four or five years, um we get that but also the price of home is trending down."
And a reminder that a lease protects you, but when that lease is up, it could be sticker shock when it comes to your new rent payment.
Rolandus Johnson told 6 News, "You never know what your cost is going to be, they can raise those rates up every single year. Because usually your rent contract is for a year, 6 months to a year so you go in for a year and then you know that next year they have the right to increase by whatever percentage and I’ve heard of rent doubling from year to year. So if you get the chance to buy a home you can always come in at 7% now and there's a few birdies, i don't want you to quote me on this but there's a few birdies that I’ve chatted with that say interest rates could be coming down around march or so."
In 2022 Texas became only the second state behind California to have a population over 30 million. Much of that growth is right along the I-35 corridor and has Central Texas booming!
‘Rojo’ Says, "You look at, we are smack look dab right in the middle of Austin and Dallas and so those places are extremely, the cost of living there is a lot higher. So, you at someone like Waco that's a decent small town feel to it. That's going to bring people from everywhere to come here, I mean you can see it already the Hewitt and Woodway area, people are moving here in droves and you know that's going to bring competition and it gives you an opportunity to negotiate and speaking with a realtor the negotiations are a lot more fierce. It's always a great time to own an asset."
Remember we are now just 2 years shy of being closer to 2050 than to the year 2000. By 2050 it's estimated that Texas’s population will be over 50 million. That will lead to incredible competition for housing!