How Much Is Waiting To Buy Costing You?
It's no secret that recent years have been challenging for buyers, but if you've been sitting on the sidelines waiting for the market to "crash" or for interest rates to drop ... you may want to reconsider.
Ideally, we would all buy a home with a low-interest rate, for a great price... but in our current landscape, that probably won't happen anytime soon. And if you think we'll see interest rates below 4% again in our lifetime, think again.
If you've been waiting for the "perfect" time to buy, read through this post to read about how much it could be costing you.
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Waiting to buy a home until interest rates drop? You may want to reconsider... While lower interest rates make it cheaper to borrow money and increase your overall buying power, interest rates are just one factor that determines affordability.
When rates drop, demand increases because more people can afford to buy. The result? Prices tend to increase. So, if you are waiting for interest rates to drop, you may find yourself back in a multiple-offer, highly competitive situation again. There just aren't enough homes for sale.... and if rates fall, this likely won't change. You can always refinance to a lower rate if rates decrease, but you can’t reduce the price you paid for your home...
One of the most obvious costs of waiting to buy a home is the year-over-year increase in property prices (just take a look back at just the past 3 years..) Experts predict home prices to increase every year through 2027.
NOW FOR A LITTLE MATH
Buying now means you can start building equity immediately. With rent prices sky high, you’re only throwing your money away instead of investing in an appreciating asset. So stop stressing about trying to time the market or listening to the media, and remember that there's never a "bad" time to buy when you know it's right for you.
There's never a one-size-fits-all answer to whether now is the right time to buy a home, but if you're serious about buying, the best thing you can do is talk to a trusted agent to discuss your options.