If you read the news or watch TV, you can’t help it but feel anxious. Not a day goes by without hearing about a new type of crisis, raising prices on gas, oil, utility bills, and food. On the other hand, there’s an ongoing crisis unfolding in the job market, with more people asking for fair wages and benefits.
Furthermore, if you take a look at the real estate market, the situation is not better. The housing prices are on the rise but people lose their homes to debt every day. Also, rent is going up and many middle and low-income families feel there’s no more room for them in cities where they used to feel like home.
So, is it wise to buy a home right now, especially considering all these concerning aspects? While it’s true that we are currently going through more troublesome times (it seems that all once-in-a-lifetime events have gathered in the timespan of a couple of years), you can’t wait for the perfect time.
First of all, there’s no such thing as a perfect time – if you made the decision and have considered all your risks, then the perfect time to make the move is now. If you’re still on the fence, here are a few factors to consider before making one of the most important investments of your lifetime:
Mortgage Conditions & Rates
One of the first things home buyers must look into are available loans. Luckily, there are lots of offers on the market, and even buyers who can’t afford a large down payment have a solid chance at getting an affordable mortgage with acceptable conditions.
Therefore, as long as you can find a trusted mortgage provider that fits your current needs, this aspect shouldn’t be too worrisome. On the other hand, if you’re still undecided, it does help to keep the mortgage rates under observation. This way, it will be easier to understand the market’s direction and you should feel less anxious about your decision.
It Won’t be a Sellers’ Market for Long
Up until recently, the US real estate market was, what specialists call, a seller’s market. In short, because there are more buyers than houses for sale, the seller has a lot more power in deciding the price and igniting a competition between buyers.
However, things are slowly changing as more new homes are built and the demand starts to drop. Sure, it will take more time before the shift is complete, but sellers are already slashing the prices in some areas.
Therefore, this could be a great opportunity to invest in real estate, not just become a homeowner. As long as you make sure to consider all the risks, you could take advantage of the current evolution of the market.
Can You Afford It?
Buying a house is a major investment and one of those decisions that can have a serious impact on your lifestyle, but it shouldn’t be a hindrance for your other goals. So, before even starting to look at houses, you have to run the numbers and run a deep analysis of your spending habits.
Can you afford to pay the downpayment and all the other costs without going broke? Can you support the mortgage without fighting for survival each month? Will you be able to cover repair costs and other maintenance projects that will come your way?
The current market is still highly competitive and there’s a chance prices will continue to rise. However, if you have the means and you think you can afford the mortgage, then it’s time to make your move. Otherwise, it’s best to wait and continue working on your financial stability.
Interesting Related Article: “Top 7 Ways Machine Learning Is Transforming Real Estate“