Knowing the different types of markets and understanding these
3 considerations will help you determine whether you should buy now or wait a year.
As you know, there are three different types of markets when it comes to real estate:
- A buyer’s market
- A seller’s market
- A balanced market
Timing the market can be tricky because the only way to know it is shifting is that well, it already has.
Below are 3 considerations for deciding if NOW is the right time to buy.
- The market
- Interest rates
- Your personal situation
As you know, we are in a seller’s market. It’s definitely harder for those trying to purchase a home than it is in a buyer’s or balanced market. That said, the other two factors come into play as well. As interest rates go up, buying power decreases. If you are using a mortgage to purchase, the higher the rates, the higher the payment. The higher the payment, the less home you may be able to qualify for.
And for those who will be selling a home in order to purchase, you will be able to maximize the value of the home you are selling, but so will the person you ultimately purchase from.
Your circumstances will determine whether or not this is the right choice
The best way to know if now is the right time? Do your homework. Talk to your agent and consult with a lender who is willing to educate you about the pro’s and the con’s of buying today versus waiting.
In fact, our team here at Buckelew Realty Group has an educational program called the Better Buyer Education Series. The group meets monthly to discuss issues associated with buying a home and it’s open to anyone who wants to be fully prepared when they decide to enter the market.
Call or email our office to learn more about this free program.
We hope this was helpful. Click HERE to learn why investors want to buy your house and other great videos.
