Why Now is a Great Time to Buy A Home
Savvy home buyers know that timing is the name of the game when it comes to closing on a home. The month of June has one of the highest home-for-sale inventories, and this generally continues through the summer months. More homes on the market during peak homebuying season means more competition on price and more properties to choose from, giving homeowners plenty of choices and some leverage in negotiations.
Thanks to the Fed’s recent decision to break from previous policy/forecasts and not to raise interest rates, buyers can take advantage of low mortgage rates (at least in the short-term). In 2018, the market was restricted by low inventory and high prices, but new construction, more inventory entering the market, and steady interest rates promise to offer some relief this spring and summer.
Economic indicators like low unemployment, low inflation and slight wage increases are also good signs that it could be a good time to buy a home. According to NerdWallet’s 2019 Home Buyer Report, “more than a third of Americans say they plan to buy within the next five years — and nearly one-fourth of those prospective buyers say they’ll buy in the next 12 months.”
Potential buyers should be wary of waiting too long to buy, as it is unclear how market conditions will play out over the next 12 months and whether or not interest rates will remain low. An added benefit of buying in May or June as opposed to waiting until later in the year is that inventory will not be picked over, and bidding wars are less likely (unless your particular market is oversaturated with buyers).
Ultimately, the best time to buy a home is when you are financially secure, confident in your career, and are able to secure a relatively low 30-year mortgage rate. If you’re interested in a home mortgage product but don’t know where to start, an Open Mortgage loan officer can help.