Obviously, a lot has to do with your personal situation but if you are ready, willing and able, don’t let the current market scare you off.
Here’s why buying a home now is a good idea:
- You will start building equity starting now.
Real estate is a long-term investment and almost always gives you a return unmatched by other types of investments.
- Rates will change but prices likely won’t come down much, if at all.
In fact, when interest rates decrease, the market is going to go nuts. Yes, more inventory will come on but if you think there is a lot of competition now, even more buyers will jump into the marketplace when rates drop. And that will keep prices from dropping and probably even going higher than they are today.
- Your payments will not fluctuate like rents.
Property taxes almost always go up (usually nominally) but your amortized mortgage payments will not!
- The holiday season is the best time to buy.
Other buyers are putting their search on hold, sellers who put their homes on the market in November/December have to sell and service companies like movers and painters may be offering discounts during their slow season.
Positioning yourself to be as competitive as possible in this environment is still very important. Keep your credit score strong, focus on building a good down payment, and work with a reputable local lender to get your pre-approval in order. I’ll work with you to present compelling offer terms to the seller designed to beat the competition and get you into a home soon!