When Is the Right Time to Buy a Home?

Filed under: Real Estate

Young couple showing key from new house

Whether you’re dreaming of buying your first home, or you’re just ready for an upgrade, you might spend months or years getting ready to make your move. It’s one of the biggest decisions you can make, so naturally you want to do it right. If you’re trying to decide whether to begin shopping for a new home, consider these four factors:

Home values. As with any other market, the housing market sees price fluctuations. If you buy when prices are low, you get a better deal and set yourself up for a possible profit if you sell your property in the future.

Is now the right time? The housing bubble burst several years ago, and prices on both new and existing homes have remained low ever since. We’re starting to see some recovery in the market though, so the time to strike and get a great deal is now!

Season. While we’re on the subject of home values, consider the fact that prices tend to rise during the summer months. More people prefer to shop for a new home during the summer, so there is more competition among buyers. It’s great for sellers, of course, but during the summer you lose a bit of bargaining power as a buyer.

Is now the right time? Yes! Now that we’ve reached the cool season, home sellers will be more motivated to reach an agreement with you.

Interest rates. Unless you’re able to pay cash for your home, you will need to secure a mortgage. Your interest rate will heavily influence the amount of your monthly payments, as well as the total amount you eventually pay for your home over the term of the loan. Obviously, it’s a good idea to get the lowest possible interest rate.

Is now the right time? All signs point to “yes”. Interest rates remain historically low, and probably won’t drop any lower in the foreseeable future.

Mortgage insurance. Buyers aren’t thrilled at the prospect of paying mortgage insurance, but in most cases it is required by lenders. Luckily, the average mortgage insurance premium recently dropped from 1.35 percent to .85 percent.

Is now the right time? In most cases, it would make more sense to take advantage of current low mortgage insurance rates, rather than wait and risk an increase in premiums.

As you can see, right now appears to be a great time to shop for a new home! For more more information on the current home market, or to schedule an appointment to view some new homes, contact Lloyd Mize at Harvest Team Real Estate (951) 551-1677.