The cost of buying a home fluctuates each year, sometimes several times a year. Take into account fluctuating interest rates too and it can make anyone’s head spin trying to decide when is the best time to buy a house.
Be as Knowledgeable as Possible
It is important to keep up-to-date with house prices in the locations where you plan to buy. The prices can fluctuate a great deal so being in the know is crucial. You can easily save or overspend thousands of dollars depending on how much information you have at your disposal. There will be different trends to consider depending on your preferred locations. For example, if you plan to move to a specific area such as Lake Norman in North Carolina, make sure you know the latest trends in Lake Norman real estate.
You can do this by building a relationship with a reputable real estate agent in the area. Sign up for newsletters and email updates on new real estate listings. Be extra vigilant by regularly checking out the prices in the locations you plan to buy a home yourself so you know when you’ve spotted a good deal.
Know Your Personal Situation
Aside from the current housing market prices, you will also need to know if it’s the best time to buy a house based on your own personal and financial situation. Can you afford the monthly mortgage payments while being able to save money for emergencies? Are you absolutely sure the area where you plan to buy is a great fit for your career and lifestyle? Do you plan to start a family within 5 years?
Get an honest assessment of your financial and personal situation before making the decision to buy a house. It’s one of the biggest commitments you’re going to make in your entire life.
Interest Rates
So you’ve decided that it’s personally the best time to buy, the next step is to check the interest rates. The lower they are, the better, obviously. A simple drop or rise of 1 percent in interest rates could save or cost you over $50,000 in the case of a thirty-year mortgage.
Aim to lock in a low interest rate with a mortgage that is fixed, as opposed to an ARM (Adjustable Rate Mortgage). This will prevent any nasty shocks from year to year.
Price Fluctuations
We all know of the housing crash that happened in 2008 due to the global economic crisis. How are house prices now, several years after that crash? Are house prices still low or did they go up? It all depends on the area you are looking to buy. That’s why it is very important you keep yourself updated regarding house prices where you want to live.
Generally speaking, homes now are significantly cheaper than they were in the peak of the housing bubble 5 years ago. They could still drop – or rise. A lot will still depend on speculation and this makes it even more important to keep on top of local trends.
There’s a lot of money that goes in buying a house. You will need to spend time and effort negotiating to get the best price. Weigh in factors mentioned above like your personal situation and housing prices fluctuations then decide if it’s the right time to buy a house for you.