We’ve already rolled into February 2020. The market has started to pick back up, and we’ve been getting this question a lot: Should I buy now or wait a few months? Here are the facts that can help you make an educated decision on what’s best for you.
First, let’s look at some trusted sources like CoreLogic, Fannie Mae, NAR, MBA, and Freddie Mac. They have a long track record of correct predictions about the real estate market. What are they saying right now? Well, they’ve all predicted that purchase prices will rise by 2% to 5% over the next year. They have also predicted that interest rates will stay relatively flat.
As you wait, the costs to buy a home could significantly increase. If prices go up and rates increase, that could have a huge impact on your home affordability. When it comes to buying a home, it’s all about remembering that you’re living in the payment, not in the price. If you can afford the down payment and monthly payments, and it’s what you’re looking for, it doesn’t matter what the price is.
For example, a home costing $500,000 today could cost $529,000 if prices jump as expected. If rates also go up by just 0.2%, that’s an extra $200 added to your monthly mortgage payment instantly. When you are on a budget, these costs add up. For a home in the $700,000 price range, you could be paying up to $300 more per month in just a year. That’s the cost of waiting.
Everything we’re looking at still leads us to believe that our market will move forward positively and consistently over the next year. However, it comes down to your personal situation. If you’d like to discuss with us to see if now is a good time, reach out via phone or email today. I look forward to hearing from you soon.