Here are the factors that determine if now is a good time to move.
Recently, a lot of clients have asked me, “Is now a good time to buy a house, or should I wait?” The truth is, it depends on your situation, so let’s talk about why you may or may not want to buy now.
The first thing you should consider is your primary motivation for buying. Are you moving primary residences, or is this mainly an investment? Once this becomes clear, there are a few factors worth considering: interest rates, supply and demand, and inflation.
Right now, interest rates are at historic lows. No one knows for sure what will happen to them in the future, but the safe money is that they’ll go up eventually. If you are looking to move, you might want to take advantage of these rates while you can, especially if you plan on staying in your new home for a long time.
Supply and demand are the main drivers of our market, and our current market is defined by low supply. It doesn’t look like this will change anytime soon either; not enough homes are being built, and demand is not adjusting to price increases.
Lastly, let’s talk about inflation. This is a bit of a buzzword in the news right now, and it’s all because of the pandemic. The extra spending the government engaged in to combat COVID lowered the value of the average dollar, and most experts predict that inflation will rise. Traditionally, real estate is a good hedge against inflation, so if you are investing, real estate could be the right move for you.
No one can predict the market, but hopefully, this cleared up your situation. If you have any questions about today’s topic, please call or email me. I am always willing to help.