Discover the optimal timing for buying or selling your home.
When is the home-buying sweet spot? Today, I’ll share what you need to consider when deciding when to make your move in the market.
Real estate decisions, as I often emphasize, are driven by math. If the financials align and motivation is high, it might be an excellent time to buy. Recently, we’ve seen fluctuations in interest rates, but the good news is that they have come down into the mid-sixes. With creative loan programs, one can even secure rates in the fours and fives.
Also, affordability has significantly improved over the past few weeks, and there’s an expectation that rates might decrease further. Following the news and various economists, projections suggest multiple rate drops throughout the year, enhancing affordability. As a general rule, with every 1% decrease in rates, affordability increases by 10%. This translates to more purchasing power. Reports indicate that for every 1% drop, around 5 million new buyers qualify.
However, should you wait for rates to fall before buying, or is it wiser to seize the current low competition, negotiate a better deal, and possibly refinance later? Real estate lacks a one-size-fits-all solution. Buying now with reduced competition could lead to advantageous negotiations, contrary to waiting for potentially lower rates but facing heightened competition and increased property prices.
Ultimately, your decision should align with your unique circumstances. Consult with a lender, analyze the numbers before falling for a home, and, if needed, I can provide a reliable lender referral. For sellers, the scenario is favorable as falling rates lead to increased buyer qualification, creating higher demand for properties. Home preparation, typically taking 4 to 8 weeks, is crucial for sellers planning to capitalize on this demand. If you’re contemplating selling this year, start the process early.
Call or email us, and we’ll assist you in initiating the home preparation journey. Whether you’re a buyer or seller, striking while the iron is hot is key.