7 Ways to Get Ahead of Rising Home Prices

You may be thinking that the housing market is taking a step back from the crazy prices of 2007, but unfortunately for many Americans, it's not. ​​Home prices are rising quickly and in some areas they're up over 40%! If you want to get ahead and protect your investments, there are 7 things you can do now to help keep your home affordable.

Home values are rising and unless you take steps to protect your investment, it will likely be rising at a faster rate than is sustainable. This blog post is going to outline 7 things you can do now to help ensure that your home remains affordable.

1) The first step in protecting your home is to have an expert look at the market for the county that you live in. They will be able to tell you if we're experiencing a bubble or if it's just normal appreciation.

2) If the market seems as though it is overheating, then it may be time to move outside of your area. The homes are likely cheaper in another city and they have more inventory which might make the selling process easier.

3) If you don't want to move, then consider a short sale. This could be a great option for many homeowners who are underwater on their mortgages and can no longer afford the monthly payments.

4) If you're not underwater on your mortgage, then consider a rent-to-own agreement. This way, when the home is sold years from now and for more than it's currently worth, you will have already helped with payments so there won't be such a large difference in what you owe on the property versus what it goes for at that point.

5) If you do not want to rent or sell your home, then consider refinancing. You can refinance and get a mortgage with a lower interest rate that will help keep the cost of monthly payments lower for you.

6) Another way to help keep the cost of your monthly payments lower is by getting a loan modification. This can be done through not only banks, but also government sponsored programs such as FHA and VA loans.

7) If you can't lower the interest rate or get a loan modification, then consider looking for another home. Mortgage rates are still low and there is plenty of inventory available on the market to choose from; this could be your opportunity to find something that suits all of your needs.

Concluding notes:

Home prices are skyrocketing and there isn't much anyone can do about it - but if we act now by taking these steps, we can protect our investments and keep them affordable.  When you’re thinking about buying a home, it can be hard to know what the next few years will bring. If you want to get ahead of rising prices and protect your investments, there are 7 things you can do now. These strategies range from simple tips like saving money in general or looking for homes that need some work done on them through more drastic measures such as renting out rooms or moving into an apartment with roommates until your house is paid off. The best part? You don't have to wait! Start today so that when rates rise again, you're ready for anything!