Here’s a great question that I’m frequently asked: Is it a good time to buy real estate? Today I’ll discuss my thoughts.
Is now the right time to buy real estate?Verify your mortgage eligibility (Oct 1st, 2022)
I have a funny feeling that many of us real estate professionals will answer this question differently, but allow me to share my thoughts with you today.
First, one of the key drivers in buying and selling real estate is employment. You and I both probably know that right now, employment is very strong in our market, suggesting that the likelihood of a seller being able to retain their home and a buyer attempting to purchase a home are both pretty good. I highlight that on purpose because it’s often employment that guides real estate, and as long as it stays strong, the real estate market will be strong, too.
Another driving force behind real estate is population. With populations growing and a lack of new construction homes, inventory is unlikely to increase. That suggests that if you wait until later to buy, prices will end up increasing due to shrinking inventory.Verify your mortgage eligibility (Oct 1st, 2022)
Additionally, considering the oddly low interest rate environment that we’ve enjoyed for so long, a lot of homebuyers who bought their homes when rates were low aren’t likely going to sacrifice those rates by selling their home. I have a feeling that you and I might witness future home sellers reserving that sale and retaining that property longer, suggesting lower inventory in the future.
Right now, our environment is fabulous as it relates to interest rates, and there’s a lot more opportunity, especially for first-time homebuyers. I suggest that the best time to buy a home is now—if a homebuyer is willing to say “yes”.
Another thing to be sensitive to is the fact that when interest rates are low, the numbers matter. Say you have a $400,000 home: Did you know that when interest rises by 1%, it would increase your monthly payment by more than $100? The sooner we take action, the sooner we get to lock in today’s low-rate environment.
What a great opportunity! If you’re interested in buying or selling real estate, I recommend using this time to reach out to me. Let’s find out if now is the right time for you to become a homeowner and discuss what we can do together to help you succeed.Show me today's rates (Oct 1st, 2022)