Thinking about buying a new home? Whether you’re a first-time or fifth-time homebuyer, the same questions remain in the beginning steps of the process with one of the very first ones being, “when is the right time to buy?” Many different factors contribute to this question, and we’ll explore a few for you.
The first thing to consider is the housing market. The best time to buy is when there are more sellers than there are buyers – this is called a buyer’s market. As a buyer, you’ll have the upper hand because fewer people are looking to buy than there are homeowners who are eager to sell. This leads to lower house prices and a better negotiating experience for you.
Another thing to keep an eye on is interest rates. Interest rates are constantly fluctuating and if you take the time to research and look at projections, you may be able to predict when rates will fall or rise. The ideal time for you as a buyer is before interest rates rise. If you secure financing at this point, you’ll feel comfortable knowing you didn’t miss out on a lower rate, since it may rise soon. Use resources like the Congressional Budget Office and the Federal Reserve to help you predict when interest rates will be going up.
Time of the Year
If you’ve been keeping an eye on the housing market, you may have noticed a huge spike in the number of homes for sale in summer and early autumn. This is when people may begin thinking about moving into a new home and selling their current one. If you wait until late autumn or winter, you’ll have less competition from other buyers and more power in your negotiating with homeowners more desperate to sell. Homes generally sell for 8.45% lower in January than they do in the summer. That might just make it the ideal time to buy!
Ultimately, it’s up to you and your family to decide when the right time to buy a new home is. Take these tips into consideration as you decide when is right for you and don’t hesitate to contact us at First Home Mortgage when you’re ready to take the next step in financing your future home!