Is Now a Good Time to Buy a House?

Is now a good time to buy a house? It’s the question that agents hear all day long amid constant headlines and buzz surrounding the current red-hot market. The simple answer is that it’s always the right time to buy if you’re eager to get the benefits of homeownership. Of course, the uniqueness of this market means that you have to use caution and good judgment to make sure you’re getting what you want from the huge possibilities that are being created by the specific conditions in play here.

Reason to Buy #1: These Historically Low Rates Give You Bigger Borrowing Power

The average interest rate for a 30-year fixed-rate mortgage stands at 2.97 percent, based on fresh data released by Freddie Mac. The benefit of buying when rates are this low is that you’re potentially going to pay tens of thousands to hundreds of thousands less for your home over the lifetime of your mortgage compared to someone who buys when rates are high. For many people, that means being able to afford “more house” because they’re not putting as much toward interest. While you can always refinance if you get caught buying when rates are higher, you have to deal with the hassles of closings costs. Refinancing also puts you back at the start with interest-loaded payments. Crunching the numbers based on how much you can put down on how much you want to buy may make you wonder why you’re still waiting!

Reason to Buy #2: The Inventory Will Likely Stay Sparse

Yes, it’s a bit of a feeding frenzy in the market right now. By the end of 2020, housing inventory in the United States was the lowest it’s ever been. We’re currently looking at a housing inventory that sits on a 1.9-month supply. Getting things back to “level” means waiting until there’s a five-month supply. Nobody in the real estate industry really sees that happening soon. 

Ultimately, it’s smart to at least begin looking now to try to get those offers in when beauties that fit what you’re looking for do make appearances on the market. While some people think that we’re going to see an increase in listings as more of the sellers who were reluctant to list during the pandemic become more comfortable thanks to decreased infection rates and the availability of vaccines, that increase may be negated by the low-interest rates that continue to drive buyers. We also don’t have statistical confirmation that sellers have actually been waiting to list until COVID-19 numbers drop more dramatically. 

Reason to Buy #3: Real Estate Is a Proven Investment

Anyone who tells you that they know exactly what’s going to happen in the market within the next 12 to 24 months isn’t being honest with you. However, anyone who points to the historical performance of real estate as a solid investment is simply stating what the numbers tell us. A home is a great investment that has purpose! It’s also one of the only investments where you have so much borrowing power to invest in your future.

The perfect time to buy a home is when you’ve done the preparation to finally step into a property that you can call your own! When you’re ready to find a home here in Arizona, let Stevens Realty help you navigate a market that admittedly has some new rules. Reach out to Keith and Janna today!