The Best Time to Buy a House
You don’t need to time the market just right if you’re looking to buy a house. The best time to buy is … drumroll please … when you can afford it.
If you’re a potential home buyer and you've found yourself unsure about the current market and buying a house, you're not alone. I get it, the headlines are constantly talking about inflation, interest rates going up, the market crashing, a recession … it’s scary stuff! And the old school of thought is you have to save 20% for a down payment first, which makes it seems even less attainable. But I'm here to tell you these are the wrong things to be focusing on when determining if it is the best time for YOU to buy a house.
Affordability is Key
The most crucial factor in buying a home is affordability. And by affordability I mean your monthly payment. If you have financial stability, security in your job, a consistent budget then this is the time to consider what monthly mortgage payment you can comfortably manage. Talking to a local lender can help you learn what that monthly payment is AND what that means in terms of your purchasing power. This should always be your guiding light, not when rates are low or someone says the market is about to crash.
Don't Focus on Interest Rates
Yes, interest rates fluctuate and the housing market can be unpredictable, and that might make you anxious. But let me share a secret: no one can perfectly predict the future. Trying to time the market to get the best interest rate with the absolute lowest price is like trying to catch a unicorn. And in fact, lower interest rates always mean more competition which often drives prices up. Instead, focus on what you can control - finding a home that suits your needs and works with your budget.
Avoid Waiting for a Market Crash
Waiting for a market crash is a bit like waiting for a pot of gold at the end of a rainbow. It might happen someday, but it's not a solid strategy for home buying. Real estate markets have their ups and downs, but trying to time the absolute bottom of the market is incredibly challenging. Remember, you don't need to buy at the "bottom" to make a smart purchase. The right time is when it fits your financial situation and lifestyle.
The 20% Down Payment Myth
We often hear that a 20% down payment is the golden rule for home buyers. However, times have changed, and many lenders offer mortgage options with lower down payments. While a bigger down payment can save you on interest and lower your monthly payments, it's not always necessary to start building your equity and invest in real estate. So instead of waiting until you have 20% down to talk to a lender, call a lender sooner and explore all the different loan options that could suit your specific situation. You could be a homeowner sooner than you think!
Work with a Knowledgeable Realtor
One of the best things you can do to ease your home buying journey is to team up with a knowledgeable Realtor (like us!). A seasoned professional can help you navigate the market, find the best listings, negotiate on your behalf and provide valuable insights into the local real estate scene. Full-service agents also tailor their services to your unique needs and make the entire process more manageable and less stressful.
So let’s avoid getting caught up in trying to time the market perfectly or waiting for the stars to align. Instead, focus on finding a home that brings you joy and fits your budget. Because the best time to buy a house is always when it aligns with your financial capabilities and personal goals.
And don't forget to lean on professionals like Realtors who are there to guide you every step of the way. Contact us to get started on your home buying journey today!
Want to learn more about buying real estate? Join us at our next Buying Basics class!
Thursday, September 7, 2023
5:30 - 6:30 PM
Get more details and the link to register on our Events page.