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The real estate market has changed over the past year. One of the biggest
issues facing anyone considering a home purchase or sale is rising interest
rates. After enjoying years of mortgage rates in the 2-3% range, many
borrowers are shocked to see a conventional 30-year fixed loan offering
rates as high as 7 per cent. While historically reasonable, this increase is
having an impact on the real estate market. If you are considering a move,
it’s important to remember that your lifestyle still needs to take precedence
over these temporary changes.

First, your mortgage interest rate is just one aspect of your overall financial
situation. Taking a more holistic view of the potential move, including
lifestyle and personal needs, may provide a more favorable picture. For
example, if the move is a downsize, what is the savings in loan amount
(less expensive home), maintenance and repair costs, utility costs, property
taxes, etc.? One must also consider the potential tax deduction difference
that mortgage interest might provide.

Another important consideration is that property values may have dropped
in some areas as rates have increased. While one may not completely
balance the other, it can make the increase more palatable. Additionally,
rates fluctuate and if interest rates decrease, you might have the option to
refinance down the road. Meanwhile, home values have historically been a
great vehicle for wealth building as values rise over time.

Finally, and most importantly, if your lifestyle has changed and you want to
move, then that should be your priority. Quality of life is the single most
important aspect of health. While rising interest rates may change your
decision, it should not keep you from moving if that’s what’s best.

Most people know that choosing the right neighborhood is one of the most
important aspects of a great lifestyle. When buying a new home, this
becomes even more important. While everyone knows that property values,
safety, schools, and commute ranks high in importance, there are some
considerations that are not commonly thought about in advance yet make a
huge impact on satisfaction.

· Vibrant Community and Social Scene – While some people are
looking for a quiet life in the country, for those craving more action, consider
this when choosing a neighborhood. Look for farmer’s markets, art
galleries, festivals, bars and clubs, community events; ways to create a
sense of belonging and involvement.

· Pet-Friendly Environment – For pet owners, finding a welcoming
community for their furry friends is important. Look for places with lots of
green space, dog parks, and pet-friendly establishments.

· Unique Architectural or Historic Value – There are many cities with
historical districts and heritage sites. Buying a home in these areas can be
a distinctly inspiring experience. One caveat, before buying, it’s important to
make sure to understand the rules and restrictions; often there are
ordinances which prevent changing the exterior of the home.

· Natural Surroundings – For nature enthusiasts, living near green
spaces and outdoor recreational opportunities can be important. In addition
to community parks, trails, or lakes, these buyers should consider proximity
to national parks, BLM land, or public waterways.

· Sustainable and Eco-Friendly Communities – If environmental
sustainability is important, then look for communities with eco-friendly policies and amenities. Watch for communal gardens, bike lanes, and
renewable energy initiatives.

Choosing the right neighborhood is about more than just property values
and school systems. By looking beyond the traditional aspects and
considering the unique things that enhance lifestyle, buyers can make sure
that the community, as well as the home, suits their needs.