As the dust settles on the home buying rush and interest rates creep up, you may think you missed the party and will have to wait a while to purchase your home after prices and rates fall. Nothing could be further from the truth!
While supply, demand, and low-interest rates may steal the headlines, many factors contribute to the perfect time to buy a new home. Here are a few things to think about as you consider moving from home shopper to home buyer!
First, the best time to buy a home is when you’re ready, not when the market says it’s time to buy. If your budget is set and you think now is the right time to consider buying a home, that will be the most important part of your decision. You’ve done the numbers and looked at homes online. You’ve got a pretty good idea about what you can get for what you want to spend. You may not have been ready during the frenzy. Now is the perfect time to take the next step if you’re ready.
Second, buying a home is not all about the money. Sure, money’s involved, but it’s involved in rent, leasing, or buying a car! For most of us, buying a home is about much more than just money. It’s more of a personal decision than a financial one. No one would consider purchasing a home the way we would look at buying a share of stock. We know that long before we realize a profit on our home, it will pay us thousands in benefits in family memories. We’re more concerned about what a new home will do for our lives than our bank account. Homes are personal. They are the places where we share our hopes and dreams. Many of us purchase a home because we need a new home. Some people want a new home because their family is growing, they desire better schools for their children, a better neighborhood, and a closer location to work, play, or worship. Many of these things can’t wait on the interest rate to cooperate.
Third, let the “post-boom” market work for you. Many things will happen, and some may help you find unexpected bargains. First, not everyone that contracted to buy a home will complete their purchase. These cancellations may have occurred because increased rates impacted the buyer’s ability to purchase, construction delays or the buyer’s income situation changed while the home was under construction. If there is a community you like, reach out to the builder’s on-site representative and let them know you’re interested in looking at any home that comes back on the market. There may be a waiting list in that community, but don’t be concerned; you may be able to get to the top of a waiting list quicker than you think.
Fourth, interest rates are still historically low! If you’ve been reading the headlines, it may not seem like rates are low, but they are. For most of the last 30 years, interest rates have been higher than they are right now, and with the amazing credit managing programs and innovative mortgage products, rates a point or so higher than they were a year ago probably won’t stop you from getting the home of your dreams. Today’s mortgage rate is about the same as in 2018 and early 2019.
Fifth, happy days are here again! Right now, home shoppers are in demand. There is often a lull in the home buying action after a booming market like the one we just experienced. We’ve seen demand soften a little bit. This may seem like a great time for everyone to catch their breath, but it isn’t. Home builders need to continue to sell homes regardless of the market condition, and now they need to do it with fewer buyers in the market. I’ve recently seen some home builder incentives in my email. Once you register on a builder’s website, you may see some interesting offers.
Buying a home should start in your heart and head and then move over to your bank account. Rest assured that your home be a great investment. But the years of wonderful family memories are the greatest return on investment of all!