Obviously, there is no “one-fits-all” answer to this question. We are in a seller’s market due to low-interest rates and low inventory. This means there are a lot more buyers out there than there are homes to buy. But if you are ready and qualified you can buy now.
Here are a few thoughts about why now may be the right time.
We still have historically low-interest rates. Although it appears, they have bottomed out and are ready to start heading back up. This, of course, will happen incrementally.
Low housing inventory has also impacted the rental market. Rentals are extremely high and are also limited right now. But unlike settling into your mortgage payment, future rent increases are unpredictable. Being a homeowner builds your wealth, not your landlord’s.
Real Estate like so many other businesses, has a season. That season usually begins in late spring and extends into mid-fall. As I said already, it is clearly a sellers-market, but a well-prepared buyer is better off now than in a few months when the seasonal market starts heating up.
If now is your time, here are some things to think about.
Buying a home in a Seller’s market.
When it comes to finding the right house at the right price in a tight real estate market, you’re going to want experienced buyer’s agents to help you to determine the value of the home you are interested in. And – because in this type of market many homes do not last more than a few days, often the seller’s agent will be considering other offers as well. An experienced agent knows how to take your personal circumstance, get an idea from the seller’s agent as to what is important to their client, and then use whatever conditions are available to make the offer as attractive as possible. We, of course, have such agents in mind.
The New Normal
Gone, at least for the time being, are the days of spending sunny Sunday afternoons wandering through open houses to determine what you are looking for in a home. COVID has obviously changed all of that. What hasn’t changed is that buyers begin their search on the internet, and this is more critical than ever now. But when it comes to getting inside a home you will need some help and there will be some conditions. Sellers want you to see their home and they will accommodate that. But they also want to make sure that every precaution is being taken to ensure their personal safety isn’t at risk. As licensed realtors, we are bound by safety conditions that must be met to show a home.
Getting Pre-Qualified is Critical.
If you are ready and serious about buying a home, getting pre-qualified is always important. Now, with both COVID and being in a seller’s market, it is critical. For safety reasons, many sellers will make it a condition that only pre-qualified buyers are allowed in. This doesn’t mean you have to buy the home, just that you can if you want to. Even more important, when you find what you are looking for in a hot market there is a pretty good chance that you will need to make an offer quickly. But you can’t make an offer without getting pre-qualified by a lender. For some, taking this step is intimidating. If you would like some help, we can give you some referrals to outstanding lenders that we have worked within the past. A good lender will provide no pressure, talk you through the process, and get you pre-qualified sometimes even the same day. And by the way, getting pre-approved does not affect your credit score.
In the end, nobody wants to buy a home in a seller’s market. At the same time, you shouldn’t let a heated real estate market prevent you from buying a home if that is what you want to do and, you’re financially prepared to do so.