Thinking of when to buy a home is standard, especially if you’re a first-time home buyer. So, of course, it’s natural that you don’t want to make the wrong decision. However, is the question a “when” and not a “where” and a “what”?
There will always be places with appreciated and undervalued homes. What influences it may be the location, demographics, or local economics. For instance, the need for housing increases if you are in a place with highly demanding jobs, like oil companies. There would be a lot of properties for sale and available rentals. A range of options are present, but so is the competition. So, better keep that in mind.
Another thing is to consider your purpose in purchasing a home. What are your plans? Are you and your finances ready for a big commitment? Being a homeowner is no easy task; it requires a lot of your money, hard work, patience, and more! If you have no clear intentions, you might have buyer’s remorse—and that’s the last thing you want to happen.
Affordability Comes Into Play
Your best action plan is to buy a home only when you can afford it. Mortgages and home values are almost impossible to predict, so it’s best not to time them. Thus, if you land your eyes on a house you want and have the money for it, buy it!
Some money-saving tips below can help you better plan ahead:
- Do you plan on reselling the property in the future? Avoid buying the biggest or most expensive home you can find. You would find yourself facing challenges in selling it. On the other hand, the smaller and less expensive ones appreciate more! So, take it as a consideration.
- Know your property taxes, utility costs, and homeowner’s association fees.
- Get an inspector before you buy the property. Yes, it would cost you hundreds but save you thousands of dollars down the road.
- Don’t open a new credit card or make large purchases in the six months leading to your home purchase. It can raise questions about increased risks to your lender.
Remember, the ideal time to buy a home depends on your financial situation. It will help you make wiser choices and secure a house you won’t regret buying.
Purchasing a Home Now
Various factors can affect your decision about buying that home. It includes market conditions and personal circumstances, among others. But when asked when it is ideal to buy a house, the spring season always appears. Due to having longer days during this time, the housing market booms. Busy people like you have more hours on your clock because of the longer days, making hunting for the perfect house easier. Despite that, you would have to compete with more prospective buyers on a home you desperately want. There is a surge in the prices due to the increasing demand too. So, you would have to step up your game when negotiating and making the right decisions.
Slower seasons like winter and fall are ideal too! As a buyer, you can take advantage of this decreased competition in the market. The prices are lower, plus there’s more room for negotiation! Additionally, sellers are keen on closing a sale due to the year ending. Thus, you can guarantee to secure a good deal.
Ultimately, there is no best date to buy a home. Instead, it is due to personal circumstances, financial stability, the urgency to move, and your specific housing market interest.
Housing Market Outlook
Here is a quick rundown of today’s market conditions to further assist you in determining whether or not to buy a house now.
Higher Mortgage Rates
There has been a significant increase in mortgage rates since the historic lows. During the fall, a 7% 30-year fixed-rate mortgage is observed. However, this year, it bounces from 6-7%. In addition, the Federal Reserve raised the federal funds rate ten times since March 2022, with the recent increase on May 4, 2023. As a result, buying power decreases as higher rates make home loans more expensive.
Limited House Supply
According to the National Association of Realtors, there was a 2.6-month supply of homes nationwide in March. It means that selling all properties would take an average of two and a half months. Thus, it is under a five- to six-month supply that considers a balanced market with many buyers and properties on sale.
The Bottom Line
Whether it’s your first time buying a house or your third, considering several factors before purchasing a place matters. No one thing should influence your decision. Instead, it must be from the pooled analysis of your financial situation, your readiness to make that purchase, and your housing market interest’s condition. With all these factors studied and checked on your list, you can say you’re ready to buy a home. Thus, you can gain confidence in your decision once you’re all set!
What To Do:
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