Today is Black Friday and we are off and running into the thick of the holiday season. With Thanksgiving behind us it’s time for America’s favorite past time: shopping! This year is buying a new home on your shopping list? If so, there are some things you should consider.
1) Interest rates recently hit 20+ year highs at 8%, but they have come down to the mid 7’s which in turn appears to be increasing demand. The window for home buying with less competition among buyers may be closing. This will be especially true if rates continue to descend.
2) Low inventory levels are still an issue. That means there are more people looking now at very few homes, and the likelihood of getting into a multiple offer situation is increasing.
3) The holidays are often the best time of year for buyers because we typically have less buyers in the market. Which brings me to my next point…
4) If you think purchasing a home now is difficult, just wait until we see the spring surge of buyers. When the flowers start blooming, the market starts booming.
5) If you are unable to find the right house this holiday season do not despair. Typically we see less home buyers in the market in January and February, so there is still time before the spring rush.
Here is a general note to home buyers who are sitting on the fence or playing the looky-loo game. If you are waiting for prices to come down you might find yourself living in a Samuel Beckett play, just waiting for Gadot. I’ve been selling homes for a long time, and in my experience I’ve seen a lot of once qualified buyers get priced out of the market. He who hesitates is lost? Well, maybe not lost, but they are paying someone else’s mortgage and that means they are missing an opportunity to build wealth.
Just remember, the surest road to prosperity in America has always been through property ownership. That’s not likely to change in the years ahead.