Is now a good time to buy a home? That's a question that many prospective homebuyers are asking these days. The answer is yes and no. It's true that mortgage rates remain at record low levels. However, home prices are on the rise, especially in hot markets like here in Northern Virginia. Home inventory is low, which creates more competition for the homes that are for sale. Multiple offers are common right now, as well as homes going under contract within days of hitting the market. There are also fewer short sales and foreclosures than in the last few years.
My feeling is that this is a good time to buy a home...IF YOU ARE READY to own a home. If you have done your research and find a home that you love, in a location you want to live in, for a price you are comfortable paying, then go for it!
But if you are not financially ready for homeownership, and the responsibilities that go with it(monthly payment, taxes, insurance, maintenance, home owners association dues, etc.) or cannot afford to buy a home in the area you desire, then maybe now is not the right time for you to buy a home. If you think you may want to buy a home near your preferred area but are not sure if you would like that area, then I recommend renting in the nearby area to see if it's somewhere you would like to own a home in. That's better than buying a home in an area you're not sure about, then regretting it later once you're living there. It's faster and easier to get out of a lease than it is to get out of a home you already own(but don't want).
A lot of people got themselves in trouble not that long ago by buying homes when they really were not ready. Don't buy a home thinking that you will be able to sell it for a quick profit. Unless you are an experienced investor with a large cash flow and a network of trusted contractors, you likely won't make a quick profit. If you want to buy a home and plan to enjoy living there with your family for years to come, while letting your home appreciate in value, then this is a good time to buy. Plus, mortgage rates are rising, they are still historically low.
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