Are you thinking about buying a home but unsure if now is the right time? Many potential homebuyers face this dilemma, especially in a fluctuating housing market. At Influencers Realty Group, we understand the importance of making informed decisions. Here are three key questions you should ask yourself when deciding whether to buy now or wait.
1. Should I Hold Out for Even Lower Mortgage Rates?
It's tempting to wait for mortgage rates to drop even further, but remember, you're not the only one with that idea. If rates do decrease, more buyers will enter the market, leading to increased competition. This surge in demand can drive up home prices, making it harder to find a property within your budget.
As Greg McBride, Chief Financial Analyst at Bankrate, explains, "A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house."
In short, waiting for a lower rate might not save you as much as you think, especially if higher competition pushes prices up.
2. Is It Better To Wait Until After the Election?
Historically, home prices have often risen the year after a Presidential election. This pattern suggests that buying now, rather than waiting, could be financially advantageous.
Consider the data from the past 8 Presidential elections:
- In 7 of these cases, the median home price increased the year following the election.
For example:
- 1996: $122,600 ➡️ 1997: $129,000
- 2020: $296,700 ➡️ 2021: $350,400
While past performance isn't always a guarantee of future trends, the numbers do suggest that waiting could result in higher home prices next year.
3. Do I Plan To Live There for a While?
If you're planning to stay in your home for several years, buying now could be a smart financial move. Real estate is generally a solid long-term investment, and homeownership allows you to build equity over time. In fact, according to CoreLogic, the average homeowner gained about $25,000 in equity over the past year alone!
By buying now, you can begin building equity immediately, which could serve as a significant financial advantage in the years to come.
The Bottom Line
Should you buy now or wait? It depends on your personal circumstances, but if you’re ready to put down roots and take advantage of potential equity gains, buying sooner might be the better option. Plus, if mortgage rates drop, you can always refinance later on.
For personalized advice and expert guidance, reach out to Influencers Realty Group. We’re here to help you make the best decision for your future. Connect with us today to discuss your options!
