Why now is a great time to buy a home!
Why is now the best time to go out to find the home of your dreams?? Last spring, we had an absolute crazy market with buyers putting offers in 5-10% over asking with no contingencies and properties were getting 15 or 20 offers. What has happened since then?? Interest rates have gone past 6-7% and people have pulled back as this has diminished their capacity to buy a home. Some buyers have decided to stop and wait until rates stop going up or start coming down. Well let’s look at the future… the majority of economists are now saying that we are in or will be shortly in a recession. At some point in a recession, the FED does try to help out and lower interest rates. When that happens, people will start coming out in droves to buy again. The issue is we’ll have all the people who decided to wait plus all the new buyers who can now purchase, so that’s even more buyers and we have less houses. Because of the economic outlook, a lot of home builders pulled back building by at least 10% , so this spring market is going to be even worse than it is right now. The good news is if you do buy right now, interest rates will be coming down within the year and you’ll very likely be able to refinance.
For more tips and advice on the mortgage and home buying processes, join me at my Home Buying 101 Master Class, find out more at www.homebuying101class.com