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Now Is The Time to Buy a Home in Pierce County

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Home ownership is a big pillar of the American Dream. A place to build equity and most importantly a place to call your own. Today there are many opportunities in the housing market to find a home that is right for you. But just like any living thing, market conditions can change, and these opportunities may not be around for long. Take a look at why now is the time to buy a home in Pierce County.

Now Is The Time to Buy a Home in Pierce County

Low Interest Rates

One of the most important reasons that now is the time to buy a home in Pierce County is the low interest rates. The low interest rates in today’s market are helping home buyers find affordable housing. When consumers pay less in interest, this gives them more to spend. This will result in a lower mortgage payment each month. Additionally, locking a rate in this year will secure that rate for the next 30 years, assuming you sign a 30-year loan.

Down Payment

While many lenders expect homebuyers to make at least a 20% down payment, with an FHA loan, you’re able to put down as little as 3.5% down. And with a USDA loan, there is no down payment requirement at all. This removes the large road block that stands in the way of many first time home buyers closing on their first home. This alone is helping first time home buyers understand why now is the time to buy in Pierce County. However, it is important to note that with loans that allow less than 20% down, mortgage insurance is required to be paid by the home buyer.

Built to Fit Lifestyle

With millennials always on the go, homes today are designed to accommodate their busy lifestyles. Homes such as urban condos, and single family homes feature open floor plans, flexible spaces, and low maintenance materials. With energy costs near the top of home buyer’s concerns, it’s good to know that homes that are built today can be more energy efficient. And in many area, prospective home buyers who wish to live in 55+ neighborhood, will find a large selection of homes tailored for the lifestyles of the baby boomers. These features among others make homes today more appealing than ever before and remain a top reason that now is the time to buy a home in Pierce County.

Inventory Levels Have Increased, A Bit

An inventory shortage has plagued the US housing market since 2015. This has forced some buyers to settle in homes that are simply not right for their lifestyle and may be out of their budget because they had limited options. New home construction has expanded, raising the inventory levels of houses giving home buyers more options when shopping for the right home.

Forced Savings

Buying a home is an investment. The great thing about buying now in Pierce County is that you’re able to build equity without evening thinking about it. The demand to live in Downtown Seattle is so high that the costs of homes are growing. So if you buy this year and decide to sell in 5 years, you’ll likely make over one hundred grand in equity. Many home buyers use this equity in future years as a down payment on a larger home, or to pay of personal debt.

You may also like: 5 First Time Home Buyer Mistakes in Pierce County.

Budgeting Tips for Home Buyers in Pierce County

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Buying a home is one of the largest financial transactions you will make, and preparing your budget beforehand will help make the home buying process in Pierce County less stressful. Here are 3 budgeting tips for home buyers in Pierce County.

Budgeting Tips for Home Buyers in Pierce County

Organize your finances

By breaking down your monthly spending into rent, utilities, shopping, groceries, extracurriculars and savings, you’re able to see your areas of strength and areas of weakness. For example, say you are spending $1500 a month on rent, $200 a month on utilities, $1000 a month on shopping, $500 a month on groceries, $150 a month of extracurriculars, and $100 a month on savings. When you put all of these data points into a pie chart and you’re able to visually see that you’re spending almost 30% of your monthly bills on shopping, when half of that could go into your savings pot. By walking through your finances one step at a time, you’re able to track what you spend and make goals to increase your savings.

Set goals

While your large goal is to buy a home, setting smaller goals will help you stay on track and feel successful while you make your way there. If your goal is to set aside $500 a month into savings, how are you going to get there? Consider these methods:

  • Switch to a cheaper gym. Gyms can be extremely expensive, and especially so if you aren’t using them as much as you’d like. Do some research on less expensive gyms, and look into home workouts so you can see if you can cut that cost out all together.
  • Cancel cable during the summer. Television usage drops dramatically in the summer due to vacations, spending time outside, and spending time with loved ones. Consider cutting your cable bill just for 3 months (granted you’re not in a contract), and watch your savings increase those three months.
  • Limit restaurant visits to once a week. Restaurant bills can add up, especially if you’re buying appetizers, drinks, and desserts. Make it a goal to only eat out at a restaurant once a week, and make your own meals the rest of the week.
  • Make your own coffee. The average Starbucks coffee is $5. Imagine if you cut that cost out of your monthly spending. A bag of coffee ranges about $20 a bag and lasts about a month. That’s a savings of $135 a month just on coffee alone.

Track your progress

While it’s great to make goals, they don’t mean much unless you track your progress. The most important budgeting tip for home buyers in Pierce County is to keep yourself accountable. If you make a purchase that wasn’t planned for, add it to your budget and readjust your goal for that month. It’s ok to make an extra purchase here and there, just as long as you can stay on track for the coming months. As a home owner, there are many unplanned costs that come up, so getting into a habit of budgeting now will prepare you for these financial challenges that inevitable pop up.

You may also like: 7 Steps to Buying a Home in Pierce County.