Benefits of today’s Market (For Buyers)
I know the market feels crazy, and it is always hard to determine when it’s the right time to buy a home. Such a huge investment is hard to be comfortable with. Especially if it’s your first purchase.
Take comfort in knowing that this is actually a pretty good time to buy a home. Here are a few reasons why.
- Less competition : We are not quite into a buyers’ market yet. But there are signs that it is coming. Very few homes have multiple offers on them. This means that you can get in and negotiate without begging the seller to accept your offer.
- Sellers are willing to negotiate : Take advantage of the fact that sellers are willing to pay closing costs. I have seen several listings where the sellers are offering closing cost help upfront. You don’t even have to ask for it. This means less cash out of pocket to buy a home.
- Offers are getting accepted : Even at lower than ask price. We are seeing offers get accepted with no counteroffer, and with no multiple offer notification.
You may be saying “what about the high interest rates”?
Here is the best answer I can give you. If you can afford the payment, and you’re not stretching too far, buy a home. You will never regret it if you purchase responsibly. It doesn’t matter if the market is up or down. Or if interest rates are high or low. Buying a primary residence (the place you live) will always pay off in your favor, over time.
Let me tell you that a rate in the 6’s, 7’s or even 8’s is considered normal. It’s perfectly ok to buy a home with these rates. Besides, we won’t see really low interest rates like 3, 4, or 5 percent in a long time. I agree that the rates were fantastic back in the day. But if you are holding out for low interest rates, and low house prices, you will be years out before you buy. In that time home prices will appreciate, and it will be harder to buy based on higher home prices, even if the rates drop.
It may be hard to believe, but now is the best time to buy real estate. Especially for a home that you are going to live in. If you are looking for an investment property, we will need to look at the idea from a different point of view. This becomes a cash flow decision instead of a place to live. Let me know in the comments if you would like to see an article on the best ways and time to buy investment properties.
This may be a great market to buy and it’s passing you by. If you are frustrated and not able to get into the market, or need help getting started please consider a consultation, and see if there is a way to get you into a home.
Redwood Real Estate offers all consultation regarding the reals estate market. Call now for free discussion.