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Is Now A Good Time To Buy A House? Find Out Who Really Knows

July 14, 2021

Real estate agents are often asked…Is now a good time to buy a house?  For those that are contemplating a purchase of a home, this question is especially worth consideration, given that we are deep in a sellers market, perhaps the most unpredictable one ever! Prices are rising to record breaking levels. Sellers are less willing to offer concessions, more prone to sell ‘as is’ and not letting buyers off the hook when their homes appraise for less than the purchase price…and that’s the market today!  Who knows what tomorrow holds if the same question is asked then. In view of this, what factors might potential buyers consider if purchasing a new home is a necessity or at the very least, highly desired? Consider these 3 factors:

 

#1: Interest Rates

Right now, as of the publishing of this article, interest rates are still at record lows. According to Fox Business News, based on data compiled by Credible, average rates are lingering below 3.000% since February. Only 15-year refinance rates rose since July 9th, with rates across all other terms holding steady. Interest rates may basically be defined as ‘the price of money’. If cost of money is at a record low, for some this may be an ideal time to borrow some for a home.

 

#2: Price or Payment: Which Matters Most?

Of course, rising prices should be a reasonable concern for a buyer. And who wants to pay more than what a home is worth, especially if there’s a negative gap between the appraisal amount and the purchase price? However, for some, this may be less of an issue if the interest rate is low enough.  This is because even for a higher priced home, the monthly payment may be affordable with a lower interest rate, depending on one’s personal financial circumstances.

 

#3: What’s in it for you, the buyer?

Though it is indeed a seller’s market, it really comes down to what your wants and needs are as a buyer.  Give some serious consideration to your financial situation.  Have some serious discussions with your family or those within your circle of trust to determine what truly are your housing needs.  And of course, talk to some industry professionals such as a real estate agent, mortgage lender or home inspection to help you understand the positives and negatives of the current market, as well as devise a comprehensive plan.

 

So again, the question, is now really a good time to buy a home?  Hopefully, considering these factors will be helpful but really, the answer will be up to you.

 


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