Most of the country is experiencing a strong seller’s market. High demand coupled with low inventory has created a real estate market that is moving at a furious pace. This kind of activity can give home buyers reason to question if it’s really the right time for them to be buying a property. The answer to that question is going to depend on each individual buyer, but in general when homes are selling quickly, it’s often a sign that the climate is right for buyers to buy. After all, homes only sell when there are buyers to buy!
What is causing buyers to come out and snap up these properties at this frenzied rate? Many factors go into a buyer’s decision to buy, but interest rates are normally at the top of the list. Our interest rates are still historically very low and lenders are offering fixed rates for 30 year loans which would have been the work of fiction just a decade ago. Home buyers have the opportunity to lock in these low rates while entering a housing market which is still steadily moving up in value.
With all this real estate activity, a home buyer might ask if it’s better to wait until after summer….will things slow down in the winter months? While normally the fall sees a slower rate of sales, by the time January comes along, buyers and sellers return with a passion. Should you wait? Again, it’s a personal decision and should be based on your personal needs. The fall typically sees a lower inventory of homes for sale. This gives buyers less of a choice and could lead to stronger competition for those available. Additionally, today’s interest rates are low, there is no guarantee what rates and home values will be in 3-6 months’ time.
If you are a potential home buyer, the best way to determine if this is the right time to buy is to do your research. Reach out to your lender to get concrete interest rates and terms, watch for properties which suit your needs and schedule visits to see them, and be prepared to move when you find the right house.
Rather than trying to guess about the right moment to buy, be prepared and when the right opportunity presents itself, you’ll be ready to move.