Are you a potential home buyer wondering whether NOW is the right time to make a move? Interest rates are in the 6-7%, double what they were a year ago, and inventory is still very low keeping it a seller’s market as prices remain stable and still appreciating. Regardless of all this, the answer is simple: it’s always the right time to buy if you’re financially capable and have a need to do so. In this blog, I’m going to discuss my reasons why now is the right time to buy regardless of the current market conditions.
First and foremost, a home is an essential need right next to food. It is the second most important human need. And for many, a place to call their own home is the American dream! To no longer be spending money renting, paying for a landlord’s mortgage and making them wealthy. Real estate is the most common pathway for the avg person to build their personal wealth and net worth.
Second, it’s important to remember that buying a home is a personal decision that should be based on your own unique circumstances. We’re assuming that you’re in a financial position where you can make a purchase should you have a need. Some of these needs might include a job relocation, a growing family, downsizing family, moving to be closer to family or friends, or medical conditions or even the death of loved ones. As you can see, simply waiting for the “perfect” market conditions before taking action is not as easy as it seems. If you continue to wait for say interest rates to come down, a real estate or economy crash, or for all the stars in the universe to align. You will continue to simply wait and never do anything.
Yes, unfortunately, interest rates are roughly double what they are from a year ago. In many markets, prices remain stable and still appreciating although at a slower pace. However, there are several reasons why now is still a great time to buy a home. The silver lining is that the higher interest rates have reduced buyer demand and competition. This means you should have a little bit more time to decide whether to buy a home or not when seeing a home. Also hopefully that means fewer offers and overbidding as well, giving you a better chance. However be warned, depending on your market and the specific property, if it’s a great property for your market, it doesn’t really matter what market conditions are. Great homes in highly desirable locations will continue to move quickly. So what that means is you need to be prepared so that you can move quickly! Get your pre-approval, see the home right away, and submit that offer ASAP! If you hesitate, you will miss it. Lastly, historically homes for the most part have increased. Excluding economic disasters or real estate crashes, home values continue to rise. That means the earlier you buy a home, that gives you opportunity to benefit earlier from the appreciation in that home in the coming years. All you have to do is simply look back at the previous sales prices of homes, compared to their sales prices today to see that it is only going to keep getting more expensive to buy a home. So rather than wait for prices to decrease significantly, a real estate crash, or interest rates to plummet all of which are probably not going to happen anytime soon. If you can purchase today, then just do it, become a homeowner, own your own piece of land, benefit from appreciation, and equity growth, and build your wealth.
Of course, market conditions can change quickly, so it’s important to stay up-to-date on the latest trends and talk to a real estate professional to help guide you. In conclusion, the right time to buy is always when you’re financially capable and have a need to do so. Remember to stay informed and seek expert guidance to make the best decision for your unique circumstances.