If you are ready to buy a home in Miami, you are probably receiving a lot of advice both online and offline. Also, get ready because your friends and family will give you a lot of information.

While many of them have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the local real estate market today.

Buying a home is often most people’s largest investment of their lifetime, and typically they only do it (if more than once) a handful of times in their lives. Because of the magnitude of the expense and the overabundance of info, it can seem like a daunting task.

Before getting in the nitty-gritty of the home buying process, sit down and think about why buying a home is important to you and think over these questions.

Answering the following three questions will help you determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances just for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money.

They are:

· A good place to raise children and for them to get a good education
· A place where you and your family feel safe
· More space for you and your family
· Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months. Now this is an average number. We have seen some places in Miami and Miami Beach go much, much higher.

What does that mean to you?

Simply put, if you are planning on buying a home that costs $500,000 today, that same home will cost you an additional $26,500 if you wait until next year. Your down payment will need to be higher as well to account for the higher home price.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

The Mortgage Bankers Association (MBA), the National Association of Realtors and Freddie Mac have all projected that mortgage interest rates will increase by approximately three-quarters of a percent over the next twelve months. So if you are getting financing what does that mean for your family?

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions is a good start. Speak with your mortgage person, find out what is your buying power and break down the numbers. Also, meet with your local real estate professional and know what inventory and pricing match your criteria in today’s market.

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