Is Right Now the Right Time to Buy?
Determining the right time to buy depends more on your personal situation than it does the real estate market. Of course, the market matters, but not as much a a lot of people think.
Interest rates, for example, often cause people to jump and make a purchase or hold of indefinitely. Yet, unless the current interest rate makes your potential mortgage payments too high to fit your budget, interest rates should not be a primary factor in whether you purchase or not.
Who Should Buy?
- Someone needing a larger living space
- Someone needing to move closer to their place of employment
- Someone wanting to begin building equity over paying rent
- Someone who feels ready to and can afford it
Who Should NOT Buy?
- Someone feeling pressured to
- Someone in a lot of debt
- Someone who based on their budget can't afford it
- Someone who doesn't feel ready or who may move again soon
Notice What's Missing?
No part of our 'should and shouldn't buy' list includes considerations to interest rates or what the market is doing. The market and interest rates come in to play when you look at your potential mortgage note to see if it will fit your budget, but besides that it is irrelevant.
It's important to buy with a budget. You want to understand what you can and cannot afford, and our in-house experts can help with that. Co-owner Christopher Olson, EA is a partner with Azalea City Tax & Accounting and provides free budgeting services to any client of Southern Bay Realty. We want you to only buy what you can afford and what makes sense, but waiting can be costly. Historically, home prices continue to increase,
The Most Important Matter
If you can afford it, and you want it, do you plan to stick with it? That's the big question. Because even if you buy before an unexpected crash, holding your property for several years allows the market to correct itself and you to regain any equity you may lose should you need to sell quickly. Equity is often a matter of timing, and if timing is on your side and you can wait the market out then you're rarely going to lose.
Ready to Speak with an Expert?
If you're wondering 'is now the right time to buy?', don't keep pondering the question. Speak with our experts today to discuss if your situation makes sense for you to jump into home ownership.