Why it doesn’t always make sense to wait to purchase a home.
Today, I want to tackle the most common question I get asked, whether I’m at the grocery store, the mall, or the post office. When people find out I’m a Realtor, they all want to know the same thing: What’s happening in the real estate market, especially with interest rates on the rise? Is it the right time to buy or should I wait? These questions are on the minds of both buyers and sellers.
So, here’s the unvarnished truth: None of us have crystal balls. We can’t predict the future with absolute certainty. However, we do have some solid insights into what’s happening right now. Interest rates have climbed significantly compared to this time last year. We’ve shifted from sub-3% rates to approaching high 7% rates, and this change impacts the numbers, no matter where you stand in the market.
One common mistake people make is thinking of their home in terms of its price tag, whether it’s $400,000, $600,000, or $1,000,000. Instead, they should consider the monthly payment and whether it’s manageable with the current interest rates.
The truth is that rates can go in three directions: up, down, or stay the same. What really matters is the fundamental reason behind your decision to buy a home. Are you outgrowing your current space, downsizing, experiencing life changes like marriage, divorce, a job relocation, or a desire to be closer to family? These are all valid motivations to buy.
If rates go up, you’ll be relieved that you locked in your mortgage at a manageable rate when the market was competitive. If rates drop, that’s not something we can predict with certainty, but if it happens, you could potentially refinance down the road. If rates remain stable, it’s akin to the current scenario, where not much is likely to disrupt the status quo.
The key is to collaborate with a financial expert and myself as your real estate advisor to understand your budget and your goals, and to devise a strategy tailored to you. It’s not about a straightforward “buy now” or “wait.” It’s about finding the right path that aligns with your unique circumstances.
If you have any questions or need guidance, feel free to reach out to me at www.asksarita.com. I’m here to assist you every step of the way.
