If you’ve been thinking about buying a home, you might be wondering if it would be better to hold off a bit until the market is more favorable for buyers. Experts say there’s no perfect time to buy a house, and the best time is when it makes sense for you.
Low Interest Rates
Interest rates, which play a large role in determining the size of a monthly mortgage payment, also have years when they are high and years when they are low. Obviously, lower is better. If interest rates are falling, it may be wise to wait before you buy. If they are rising, it makes sense to make your purchase sooner rather than later. Not only are Americans looking for more space as many spend more time than ever before at home, but mortgage rates are at historic lows. Having a low interest rate right out of the gate is likely going to be better for you than having to wait for rates to drop and then go through the refinance process. In addition to lowering the amount of money you’ll pay to borrow the mortgage, low interest rates can give a small boost to your buying power, since a smaller portion of your monthly payment will put toward interest.
Limited In-Person Paperwork
Because of the pandemic, many aspects of the home buying process have gone digital, like the mortgage loan process. Digital mortgages are great news for borrowers because of how complex the process can be. Most of the paperwork that is needed to buy a home will be sent online or even through the mail. Meeting with people in-person can be daunting during this time, so online paperwork can give you some peace of mind.
Prices might rise, but the upside is that you may have more homes to choose from. Housing starts are expected to increase steadily in 2021, meaning more new construction properties should hit the market as we head into the year. It’s been predicted that the stronger single-family construction than we’ve seen in at least two years will continue to rise.
At the end of the day, housing conditions vary by market, so if you’re wondering if 2021 is a good time to buy a house, make sure to talk to a local real estate agent in your area. They’ll be able to fill you in on the conditions in your specific housing market.
If you’re looking to buy a home, see what great homes we’ve got in our listings!