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Tags: Now? Really?
Yes, really.
We all remember how tough it was to find homes this Summer with all the competition that squeezed the best ones out of the market.
And rightfully so. Home values rose, interest rates dropped and the warm sun lit up the housing market, bringing with it a swarm of buyers.
But now, the winter chill has slowed market activity. Many would-be homebuyers are holding off til Spring and Summer before they make that big purchase.
However, this may not be the wisest decision.
Here’s why:
Competition
Imagine you’ve found that perfect home. You’ve toured it twice and met with your realtor several times. You finally make your offer. Yet, another family makes theirs. Now, you’re smack-dab in the middle of a bidding war.
The price of the home rises out of your comfort zone and you lose it to the highest bidding family.
Do you really want to pay more than a home is worth or lose it to someone else? Didn’t think so.
Avoid this dilemma and buy your home now while the competition is minimal.
Interest Rates
It’s December, and mortgage rates for a popular 30-year fixed loan are still under 4 percent. Actually, the current rate of 3.75 percent has been steadily dropping. We’ve predicted in previous articles, such as this one that the rate will more than likely increase by early next year.
In other words, your window of opportunity to grab a great interest rate and save money on a home is gradually closing.
Faster Closings
We all know and remember how it feels to be a kid waiting on Christmas to finally arrive: sort of the same way it feels to be an adult waiting on his or her home loan to finally get approved. Take advantage of a slower housing market now, and reap the rewards of a faster closing.
Think about it. Mortgage Loan officers are not as busy with home loan closings as they were this summer, so logically, this should lead to a more personal experience with you and a faster closing all-around.
Renewed Economy
Yes, this time of year can be expensive with Christmas gifts and such, but look at what’s not expensive right now. Gasoline. In West Virginia, most gas stations are offering it for under $2. The economy seems to be solid at the moment as jobs continue to grow and money continues to flow, according to the October Employment Report by the US Census Bureau.
In other words, if you have a solid job, then why would you want to have a roommate, live in mom and dad’s basement or live under an apartment landlord when you could own a home? After all, it’s a lot cheaper to own a home than rent one, not to mention all the equity you could potentially build by doing so.
Perfect Time is Now
According to a survey conducted by Realtor.com, people plan to buy a home in Spring. This typical plan may sound great, right? Here’s the problem: Inventory isn’t likely to be higher this coming March and April than it is right now.
Also, there’s the issue of supply and demand. Yes, inventory should grow with the warmer weather, but will it grow enough to meet the demand, or will the housing market mirror its dilemma Spring and Summer 2015 brought it?
Chances are, the number of great homes to choose from right now, will be higher than four or five months from now, when every would-be buyer and his grandma floods the market.
So, if you’re waiting on Spring or Summer to get that dream home, we say: Why? Interest rates are down and available homes are up. Jump into the West Virginia housing market now. It may be the best financial decision you make.
