If you’re thinking about buying a home, you’re not alone. Many people are weighing the pros and cons of buying versus renting. And many are still hesitant to buy since the big crash of 2008.
It’s hard to know if things really are looking up in 2018 and if right now is a good time to buy.
There are a few factors we can look at, such as home prices and mortgage rates. In the end, it’s a personal decision. This guide will help you sift through all the information that’s out there to help you determine when is a good time to buy a house.
All in the Timing
We all know the saying buy low sell high. This holds true for the real estate market too. The best time to buy a home is when the housing prices are low and when there are more homes for sale than there are buyers. So what are the predicted trends for 2018?
Right now, prices are low in relation to inflation, but there are more buyers out there than there are homes for sale. This means that it’s a seller’s market.
But there are other factors to consider, such as the price of homes in your particular area, how long homes are on the market in your area, if there’s a lot of new construction. Another factor is how the price of homes compare to income and employment.
We can take a look at all these things across the board, but the best way to evaluate these things is within the town your planning to buy in. Online sites that list Homes for Sale, can give you local information.
If all of these factors are good, then it’s a good time to buy a house in your area.
Another thing to keep in mind in regards to timing, is that rates tend to be higher in the summer and lower in the winter.
Rent or Buy
Sometimes it makes sense to rent. A lot of people will tell you that you’re giving away money towards someone else’s investment, and that’s true. But if you don’t have the time and money for the upkeep, then renting might be a better option.
There are online calculators that can help you find out the total cost of renting a home versus the cost of buying a similar home.
It’s often a good time to buy a house when interest rates are low and you can lock into that low rate. That is if you intend to borrow the money rather than pay cash. The Federal Reserve will make projections on interest rates, along with information about what rates have been historically.
In the end, you are taking a gamble on if interest rates are low enough now, or if they’re going to dip in the near future. If you think they’re going to rise, then buy now.
Is it a Good Time to Buy a House?
Many experts say that the economy is good and housing and interest rates are low. Yet, there are less homes for sale than buyers, so it’s a sellers market. All in all, it’s a guessing game.
The best way of deciding if it’s a good time to buy a house is based on your own financial situation and what you’re looking for in a home. If you have a sizeable down payment saved, your credit is good, and you want to make a long-term investment for yourself and your family down the road, then for you, it’s a great time.
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