Is it a Good Time to Buy a New House?
The pandemic has everything turned upside down, and it has many people wondering if now is a good time to buy a new home. Should you wait until things are more stable? Or is now a good time for buyers? Real estate can be confusing or overwhelming in “normal” times, and even more so now. The answer may not be a simple yes or no, but when you look at your reasons to buy a new home, where you are looking, and what your financial situation is, you’ll have a better idea.
What are Your Reasons to Buy a New Home?
Is this your first home purchase? Are you looking to downsize? Upgrade? Do you want a new home in the same area, or are you looking to make a geographical change? The reasons to buy a new home make a big difference in whether or not it is a good time to buy. If you’re looking for your dream home, now may not be the right time, especially if you are looking in an area where inventory is low. To find your “forever” home, you want to have choices, and right now you may not get that. However, you may get a good bargain, especially if you are looking in a market where industries were impacted by the pandemic.
Where are You Looking to Buy a New Home?
The pandemic has certain areas seeing an increase in supply, and other areas seeing an increase in demand. There is no national real estate market, but there are many small regional markets, all of which are unique. In some areas the inventory may be high and buyers can grab a good deal. In other areas, inventory is low and buyers may find themselves at risk of being one of multiple offers. Speaking to a real estate agent can give you a much better sense of what the inventory is like in the area, and what the market value of the homes in that area are.
Is it a Good Time for a Mortgage?
Rates are low right now, especially if you shop around for the right loan, but banks are tightening requirements as well. If your credit is good, you may qualify for a great mortgage. When considering your reasons to buy a new home, take a good look at your financial picture, especially over the next ten to fifteen years. If you’re planning to stay in your new home and your credit is good, now may be a great time to borrow when the rates are low.
Every situation is different, and your answer may not be the same as someone else’s. When it comes to understanding the real estate market and if it’s a good time to buy a house, speaking with a real estate agent and a mortgage broker is a good first step in this process, and leveraging their expertise can help guide you in the right direction. Contact Amberwood Real Estate for answers to all of your buying and selling questions.