Understanding Affordability in Today's Housing Market

At Greenwood Homes, we know that making the decision to purchase a new home isn’t something you ever want to rush into hastily. Within the housing industry, there is never a time when something isn’t shifting, and it’s typical for potential homeowners to have a few feelings of doubt creep into their minds throughout the early stages of the home buying process—but that doesn’t always mean holding off on purchasing a new home is the best option. Throughout the past few months, interest rates and affordability have been key topics on the minds of builders and potential homebuyers alike—but when you take a step back and look at all of the financial options available, this could still be an ideal time to continue looking for a new construction home.

Addressing the uncertainties

Purchasing a home is a major life event, and you should always look at all of the factors surrounding you before making a final home buying decision. No matter what direction the topic of conversation around the home market is shifting toward—whether it’s interest rates, affordability or availability—there will always be something that makes you question whether or not this is the right time for you to buy. One thing remains constant, though—the benefits undoubtedly gained by owning your own home should help erase any doubts that you might be feeling in the beginning.

If this is your first time purchasing a home, making the jump from renting to owning is another big decision to make, regardless of any uncertainties in the housing market itself. In today’s market, the topic of rising interest rates may make you hesitant at first, but with rent prices consistently on the rise, buying a home today is a better long-term investment for you, no matter what.

Looking into refinancing

In recent months, all eyes have been on interest rates. While some potential homeowners are pushing pause on their home buying efforts and waiting to see if interest rates go down, there isn’t necessarily a guarantee what will go back down. If rates did decline, then anyone that purchased a new home now would be in a great position to look at options such as refinancing their mortgage where they could get a lower monthly payment, something that should help put any new homebuyer’s mind at ease. If the act of refinancing might not be one you’re familiar with, you might think that the process would be too complicated and stressful to want to deal with. In reality, though, it’s essentially incredibly streamlined. 

The overall costs of refinancing are minimal, and the mortgage lender you worked with to purchase your home should have all of your information on file when you start the process of refinancing as long as you haven’t switched jobs or seen a significant change in your financial situation since moving into your new construction home.

A team that works for you

At Greenwood Homes, we are constantly committed to helping ensure our homeowners are able to purchase the home of their dreams—and we will work with you every step of the way to make that happen no matter when you begin your search. If you’re interested in working with us, take a look through our new home communities located across the Greater areas of Charlottesville, Raleigh, the Shenandoah Valley, and Hampton Roads and give us a call at (888) 828-7929 or fill out our online form today to get started.