Here’s how to determine the best time for you to buy a home.
When is the best time to buy a home?
Before I answer that question, I’ll address another question I get asked frequently: How’s the market? That is a difficult question to answer because everyone is different. If you ask an agent how the market is and they tell you it’s hot, that’s not a great answer. Some people want to buy, and within that category alone, there are people who want to buy primary residences, second homes, and investment properties. Others want to sell or just rent. On top of that, different price ranges require different answers. There are so many criteria to consider that we can’t always say definitively whether it’s a good time to buy or sell.
However, there are clearly times in the market where it makes sense to buy—especially if you’re a buyer who can afford to buy a property and have a compelling reason to buy. So when people ask me about the best time to buy, it’s very rarely related to the market. Instead, it’s usually related to their personal situation. That’s why my answer boils down to two factors: 1) when you can afford to buy, and 2) when you have the desire to buy.
I should also stress that not everyone is a potential buyer. Sometimes people contact me because someone else told them to buy, but I’m not a big fan of people buying properties if they don’t feel the need to do so on their own. If you are interested in buying and can afford to do so, though, it’s a great time to make your move.
Right now, affordability is as high as it’s ever been. I know it sounds counterintuitive, but interest rates control everything. As a mentor of mine once said, “When you buy a property, price is a one-time thing, but your interest rate is what you have to see every single month.” Nowadays, people are getting fixed mortgages, so if you’re approved for a loan, you can feel comfortable knowing your monthly payment will be the same for the life of your loan. If you’re renting, on the other hand, you never know what your landlord will do. Will they raise your rent or not?
If you’re not sure you can afford to buy a property, give me a call and I’d be happy to refer you to a great local lender who can help you understand your financial capabilities. If you have questions about this or any other real estate topic, feel free to reach out to me as well.