If you’ve frequently been asking yourself whether it’s the right time to buy a home, there are a few things to consider first. Three of the biggest are current market conditions, interest rates and the amount of available housing.
Current market
Market conditions can help you decide. If prices are starting to rise, you may want to move before the home of your dreams is out of your price range. Compare the sale prices of homes that sold about six months ago with similar homes in the same area that sold in the last month – that gives you a good sense of whether the market is heading up, down, or holding steady.
Interest rates
Interest rates are another factor. Lower rates reduce your monthly repayment; higher rates increase it. Check where current home-loan rates sit and monitor them over the weeks and months so you can see which way they’re heading.
Amount of available housing
The amount of stock on the market is a good guide too. When there’s an abundance of properties for sale, you have a better chance of negotiating a good deal. When there are few homes available, you may find yourself competing with other offers, which usually means paying more than you first offered.
It’s worth weighing these factors before you move forward. That said, some people simply buy when the time feels right for them personally, or when they have an urgent need to – and that’s a valid consideration too.