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Is now a good time to buy? The real estate market is known for its cyclical nature, marked by periods of fervent competition and moments of relative calm. Today, we’ll explore the factors that suggest that the present may be an opportune time to make your real estate move than it was a couple of years ago.
A couple of years ago, before rates went up, we would often see eight or ten offers on a house, driving prices up significantly. Bidding wars were common, with offers exceeding the list price by $50,000, $60,000, or even $70,000. It was a chaotic and competitive market. However, we are now experiencing a more balanced market. While some of the frenzy still exists, it’s less intense.
Homes are spending more time on the market, and sometimes sellers are willing to cover closing costs or reduce their asking prices. This shift towards a more normal market, along with slightly higher interest rates, has made it a better time to buy.
Today, you can make offers, negotiate, and potentially receive concessions on closing costs or repairs. In contrast, a few years ago, buyers were often purchasing houses “as is” without inspections, leading to potential hidden costs. So, from this perspective, it’s a better time to buy now than it was two years ago.
Now, let’s consider whether it’s better to buy now in the wintertime or wait until spring. Typically, real estate activity slows down during the Thanksgiving, Christmas, and New Year’s period, resulting in fewer buyers in the market. This might provide an opportunity to secure a property you like. In the spring, while there might be slightly more inventory available, the demand also increases. If the upcoming spring resembles the previous one, it will likely be a more active and competitive market. So, buying now could be a wise move.
Additionally, if interest rates decrease in the future, which is expected, it could drive prices higher, based on recent history. Lower rates often lead to increased demand and price appreciation. If this happens, you’ll be better off having bought now. Furthermore, if rates drop significantly, you can consider refinancing to lower your monthly payment and have extra cash at your disposal. This is something to think about when making your decision.
If you need assistance with your real estate plans, don’t hesitate to call or email us. We’re here to help you, your friends, family members, or coworkers.
