You’ve been watching local home listings, dreaming about decorating new spaces, and keeping an eye on interest rates. But one question keeps running through your head: is now a good time to buy a home?
With the housing market fluctuating so much in recent years, this topic is at the forefront of many people’s minds.
Of course, your own personal situation plays a major factor, but in general, it’s an opportune time for buyers who are ready for the next step of homeownership. Here’s why:
- Potential price stabilization
While home prices have risen in recent years, many markets are seeing signs of stabilization or even slight declines. For buyers, this could mean a better opportunity to purchase before prices rise again when demand picks up.
- Locking in before rates change
It’s no secret that mortgage interest rates fluctuate. Although they remain higher today than in previous years, buying now allows you to secure a home and potentially refinance later if rates go down. And there’s no guarantee that prices and rates will drop – instead, you might be faced with increased home prices if demand surges again.
- Less competition currently
Summer is usually peak home-buying season, which means more buyers are competing for the same properties. Right now in late winter and early spring, fewer people are actively searching, which can lead to less competition and potentially better negotiating power. Which also brings up the next point…
- Sellers may be more motivated
Homeowners looking to sell in the off-season often have a reason – whether it’s relocation, financial needs or other personal circumstances. This motivation can lead to more flexibility on price, closing costs or repairs, giving buyers an edge in negotiations.
- Opportunity to start building equity
When you make mortgage payments, you’re building equity, which is essentially ownership in the property. Over time, as you pay down the mortgage balance and your home (hopefully) appreciates in value, you accumulate more equity – and therefore, more wealth.
- Realizing additional tax benefits
Your mortgage interest and property tax payments may be tax-deductible, potentially reducing your taxable income and lowering your overall tax bill.
Is It the Right Time for You?
Of course, homeownership is a significant financial commitment, and not everyone is in the position to make that decision yet. While market conditions are important, the best time to buy a home ultimately depends on your financial situation, job stability and long-term goals.
INB mortgage lenders are happy to talk through your personal situation and help you figure out if you’re ready for homeownership… Give one of us a call today!
Stacy Wolak is a mortgage lender with INB, National Association. INB. Member FDIC. Equal Housing Lender, NMLS# 477621. Visit www.inb.com for more information. You’ll find my credentials in the “Meet Our Team” section of the website.