In 2020, more homes sold than any other year since 2006. The increase in home sales was largely due to the pandemic, as many people began looking for larger suburban homes that provide them with more space for remote working and schooling.
Even as people return to their normal lives, the demand for housing remains relatively high. So, you may wonder if it is the right time to buy a home. If so, this post will discuss some factors you should consider when diving into homeownership!
Low Mortgage Rates
One thing to consider when buying a house is the mortgage rate that you can secure. The good news is that these days, mortgage rates are lower than ever. As a result, more and more people can afford to buy the home of their dreams.
If you have good credit, you may want to go ahead and secure an incredibly low rate! But, keep in mind that the rates vary from day to day, much like the stock market. So, you may not get the same rate that you see advertised or mentioned on the news.
High Inventory with Low Demand
One of the best times to buy a home is when there is relatively low demand in your area. That’s because you’ll have more options to choose from at lower prices.
In 2021, as individuals try to take advantage of low mortgage rates, the number of buyers has surpassed the number of sellers. This creates a housing shortage and competition among buyers.
If you want to get the best deal possible, it’s best to wait out this seasonal home buying surge. Experts believe that the demand is about to weaken due to overvalued housing markets.
This factor goes hand in hand with the demand since the shortage of houses drives up prices. So while you may be willing to purchase a home for a higher price if you secured a good mortgage rate, there are plenty of reasons to wait for the costs of overvalued homes to stabilize.
For example, you may have to settle for a house you can afford in the current market, giving up some of your dream features.
On the other hand, as the demand for houses cools off, you will likely start to see some significant price drops. As a result, you may be able to afford a much better home than you envisioned by waiting it out.
Nevertheless, there is a lot to consider when it comes to buying a home. So, for more about home prices, check out this post!
Deciding When to Buy a Home
Many important factors weigh in on your decision to buy a home, including your life goals, readiness to own a home, and your financial situation. Yet, by using the information in this post, you can become a smart homeowner and get the best deal possible!
Did you enjoy these tips for buying a home? If so, check out more of our helpful posts related to real estate!