The big question for many people today is whether or not you should buy a home and when to do it. Many people want to wait until the market is down and homes are cheaper but is this always the best option?
Warren Bradley Partners have been in the business for 30 years and are here to help you weigh the facts and decide what works best for you.
Today’s Market
Housing prices are growing significantly and don’t look like they’re stopping anytime soon. Your first instinct may be to wait for them to drop but if you need to buy a house soon, it’s better to get it now than wait.
Unlike times before when the housing market was rising, homes are not being overvalued and people are borrowing the amount of money they can afford. It’s all about supply and demand. More people want houses than houses are available.
Waiting for lower prices or lower interest rates may drop your cost slightly but the home you’re looking at may go off the market and you won’t be able to find something you want within your budget.
Neighborhood Fees
Many neighborhoods with lots of amenities have HOA (homeowner association) fees. The longer homes sit vacant, the higher the fees will be. The neighborhood is paying the same fees no matter how many houses are vacant so the less houses it is divided between, the higher it is per household.
Make sure to consider these fees in your budget when considering prices but don’t let them deter you from purchasing a home. Make sure to ask questions and find out if the fees will fluctuate or if there is a maximum amount you may have to pay.
Also, when comparing interest rates, make sure to look at the specific neighborhoods. Interest rates can fluctuate neighborhood to neighborhood so it’s important to look at trends as close as possible to the homes you are looking at to make sure you are within the average rate and aren’t overpaying.
What to do with the Market
In the past, prices may have dropped fairly quickly but there’s no guarantee that will happen again. Waiting for a perfect market isn’t a realistic expectation, especially if you need to buy sooner rather than later.
It’s going to take a while for the housing market to catch up with the demand. With a shortage of labor, lots, lending, and materials and laws and regulations put in place to limit homes, it will take at least two years, if not more, for them to catch up to the need.
Don’t wait for a crash but be patient. It make take longer to find your perfect home within your budget. Broaden your search and widen your parameters. New construction may have a longer wait time for the home but there will be less competition for it because of that. Don’t just look at typical, standalone homes but consider townhomes or duplexes as well. Consider what aspects in a new home are most important to you and try broadening your search with the less important aspects.
Overall, make sure you are purchasing a home within your budget. If you can’t find what you are looking for after searching high and low, wait a little bit and then check back to see what’s new on the market.
Make sure when budgeting you are taking into account your down payment, monthly payment, any repairs needed, new furniture, and keeping some money in your emergency fund for any surprises you have along the way.
Looking for a new home? Reach out to Warren Bradley Partners to help you find your perfect home in your perfect budget!