The real estate market ran white hot last year and it’s still pretty balmy, so you may wonder if it’s a good idea to buy a house now. I am sure you’ve read more than once that it’s definitely a great time to sell, with many areas having seen all-time highs over the last year! Buying, however, has not received the same consideration. With low supply, low interest rates and record high demands last year, we saw what could be considered the perfect storm to create record high prices. So now many potential buyers are a bit nervous. Let’s think about this.
Why You Might Want to Buy a House Right Now
Moving for a job is always a strong motivator to buy a house, especially if the new position is far from your current location. Regardless of the real estate market, you’ll see some immediate benefits from home ownership. There are the obvious benefits like potential tax savings, but there are also peace of mind benefits. You can decorate the inside of your house any way you want. For some, this peace and freedom makes a house worth the investment, regardless of the cost.
Even if you don’t move far, you might want to buy a house in order to get out of a rental situation. Whether you’re sick of the restrictions of a rental, want to free yourself of the landlord, or want a home with better living conditions, the right house is the solution.
If you’re already a homeowner, and you don’t intend to move to another state, you might not even be thinking of moving yet. However, in recent times some have answered the door to receive a surprise offer on their current home. If the offer is good, it can be profitable enough to make it worth it to go ahead and sell. It isn’t uncommon to have a home sale and a home purchase both in negotiation at the same time.
Experts in the real estate market, including some at the National Association of Realtors believe the housing market may have already begun its cooling process and will continue to for a bit. This does not mean they believe prices are going down. The opposite is true. Many believe prices will continue to rise, but at a slower pace. The same beliefs are held regarding interest rates, so borrowing costs may also increase going forward.
Avoiding Future Problems
The real estate market had been on fire, but no fire lasts forever. Eventually, the prices will cool in most areas. The best way to avoid buyer’s remorse is to find a good home where you are happy living – then stay for a while. When you don’t have a quick turnaround sale on your agenda, you don’t have to worry about dips in the real estate market or increases in interest rates. You can concentrate on how great it is to live in your new home, instead.