For all those super cautious people in the world, let’s ponder the question
“Is Now The Best Time To Buy A Home?”
I would think that if you are happy with where you live, then now is not the best time to buy a home.
But if you have been contemplating a move, you might want to consider these two very strong arguments that support now as the best time to buy a home.
How To Determine The Best Time To Buy A Home
There are personal reasons that should be the most important factors when you determine the best time to buy a home. But once you determine that you are ready to move and want to time the market, consider the message from the two graphs below.
Some Home Values Are Rising - After six long years of declining home values, it appears the trend has turned for homes priced below $250,000 in Tallahassee. While high end homes are still dealing with over-supply and falling prices, homes valued near and slightly above the median are rebounding.
Mortgage Interest Rates Are Rising – If you are borrowing the bulk of the funds for your next home purchase, then you should keep a close watch on mortgage interest rates. It appears as if the Federal Reserve is going to slow monetary stimulus, and the markets reacted fast to rumors with rising interest rates over the past few weeks. While there is no guarantee the lows are behind us, there are experts finally claiming that we have seen the bottom for mortgage interest rates.
Why Now Might Be The Best Time To Buy A Home
Since nobody has the luxury of foresight, only time will tell whether or not now is the best time to buy a home. But the evidence that we have seen above certainly makes a strong case for it.
I don’t think the typical homebuyer considers the impact of rising interest rates. Everybody gets keyed in to rising or falling home values, but more than 70% of buyers finance their purchase. Consider this …
A 1% rise in mortgage interest rates right now would represent a 28% increase in the cost of funds for purchasing a home!
So you have to ask yourself, what is more likely … that interest rates shoot up above 4% or that home values will drop another 10%?
This is why we study supply and demand so closely. Every price range, in every area has a unique supply and demand dynamic that will impact the direction of home value movement.
So is now the best time to buy a home in Tallahassee? Most likely, unless you are paying cash. If you want help in determining if you should buy a home now or wait, just drop me a note and we can schedule a time to review your specific goals and needs.
Buying a home today is no picnic. What you don't know today about disclosure, mortgages, contingency clauses, property values, clouded titles, hollow warranties, to name just a few pitfalls, could cost you thousands of dollars. But how could you know? If you're like most buyers, you don't make a purchase as big and complicated as a house every day.
But I do!! Finding good properties, negotiating multi-faceted deals with sellers, and locating financing that's below market is our business. And I have to be good because my business depends on happy clients who refer their friends to me for the years and years they live in the houses Ihelped them buy.
I’d be happy to share this experience with you. Feel free to call or e-mail me with any questions you have about buying a home.
Lynne Renaud
830-456-1317
Is it Better to Rent or Buy in 2013?
Lynne Renaud, 830-456-1317
One of the biggest financial decisions you’ll ever make centers around purchasing a home. But there are a lot of things to take into consideration before you can make the decision on whether it is better to rent or buy in 2013.
In some local markets, home prices are so low it makes more sense to buy than rent. But it really comes down to your personal and financial situation. In 2013 we are going to continue to see changes in the local housing markets. Most stats and economists are pointing towards a healthier housing market this year. Meaning the supply and demand of homes is more balanced and home prices should become more stable in most areas this coming year.
First and foremost, it is important to figure out your finances when making your Buying vs. Renting decision. This includes figuring out how much you can afford to put toward a down payment and how much you can afford for your monthly payments.
?¡A down payment on a mortgage usually cost between 3.5% and 20% of the selling price of the home. The amount you put down will affect your monthly payments.
?¡When deciding on the amount that you can put toward a monthly payment, it is important to take into consideration existing payments and debts, such as monthly bills, car payments, and loans that you’re paying on when you’re determining your budget.
?¡It’s also important to know your credit score before you consider buying a home. If you have a low credit score, you may not qualify for a home loan so renting may be the way to go, at least until you are able to boost your score by paying off credit cards and forming better spending habits.
Other things to consider when budgeting for buying a home…
?¡Many neighborhoods with homes and condos have maintenance fees-so you need to factor that possibility into your budget.
?¡Make sure you that you are aware of all of the additional costs that come with owning a home by talking to a local real estate agent.
Tax Pro’s and Con’s when buying a home…
Keep it in mind that when you own a home, versus renting one, you have to pay real estate taxes and homeowners insurance. You’ll get a nice tax return at the end of the year because you have to make these payments, but make sure that you can afford to pay the monthly fees leading up to that return. If you rent, you do not have these fees or the tax incentive.
Length of time is a factor…
And finally, determine whether or not you’re ready to settle down for a while, or if you want to be mobile. If you are still mobile, moving around, or not sure where you want to end up, it doesn’t make financial sense to buy a home right now. However, if you plan to stay in one place for a while (more than 5 years), buying a house will allow you to build equity.
When you are ready to make your next move, contact Lynne Renaud at 830-456-1317! I can help you gather all the information you need in order to make an informed decision to Rent or Buy.
