There is such a thing as the perfect time to buy a house. You just need to do a lot of research, dig through the market, and collaborate with the best professionals. However, you might feel hesitant to invest due to the current pandemic. And we don’t blame you. The truth is, a lot has changed in the last two years regarding mortgage rates and property prices. With that said, we want to help you figure out if right now is a great time to purchase a home or not.

What makes right now a great time to purchase a home?

The world of real estate is rarely simple. However, if you are a first-time buyer, things can seem even more complicated. Take a look at a few reasons why you should purchase a property right now.

Mortgage rates are low

Mortgage rates have been at their lowest during the pandemic. And that is no surprise, given that the federal funds rate keeps interest rates low during difficult times. It is a mechanism intended to keep the economy flowing efficiently. And when you have interest rates as low as they are now, you can save a lot of money on a mortgage in the long run. You will pay much less each month, especially if you can get a mortgage deal under one percent. So, if you can afford to invest in a property, now can be the right time for you to buy a house.

The housing market is strong

Even if the housing prices are high and there aren’t as many properties for sale, things can change quickly. And because of growing inflation and living costs, there will be a lot of them on the market shortly, causing a drop in the price of housing.

You might need to move

The lack of space in your house can be a good reason to change homes. Even if the timing is not ideal, comfort and convenience should be a top priority. So, if your family is expanding, or you need to work from home, a bigger property is a must. Luckily, if your job requires you to relocate to another city, now is a great time to purchase a home. Just remember it’s best to rely on experts both when it comes to homebuying and long-distance moving.

Why is right now not a great time to purchase a home?

Sure, there might be a lot of reasons why you should consider purchasing a home right now, some of which we have mentioned. However, you must consider both sides of the coin to make the best decision.

The market is highly competitive

At the moment, there is a strong demand for homes, but a limited quantity of them. Therefore, there is high competition among buyers. To give you an idea, most of the properties sold in the last few months were on the market for less than a month. So, if you want to purchase a home right now, you must be sure you are ready. You need to have your finances sorted out or do so very quickly. Otherwise, someone will snatch your dream home right in front of your eyes.

The pandemic has changed the home-buying process

Previously, you could view properties in person, but today you can visit properties virtually. Although this is good news for some, others might not be so happy about it. Social distancing is necessary, but viewing a home through a screen has disadvantages. For example, you cannot see everything a buyer should look for in pictures. The seller will highlight the positive aspects and try to hide the negative ones.  In addition, not just house viewing has changed. Instead of meeting the owner personally, you can expect to close the deal over a video call. Or to sign the contracts virtually, instead of in person.

You need to be financially stable

As previously mentioned, it is a competitive market. Thus, you must have money on hand. And even though the interest rates are low, credit requirements are higher. Consequently, it might take longer for you to get qualified for a mortgage loan, especially for one with a good interest rate. So if you have the money to buy a property now, do so as fast as you can. If you don’t, you will need to be patient. Wait until you have a budget, and then you can start your house hunt. And don’t be concerned if you don’t find anything right away. Soon enough, there will be more properties on the market.

Also, don’t try to get a loan if you are financially unstable. If your job is on the line, it’s better to wait until you have a stable income. In addition, it’s a good idea to have some savings when you decide to buy a property. After you acquire the house, you will have to cover expenses such as the down payment and moving costs.

Conclusion

Choosing the best time to buy a property doesn’t have to be complicated. Even though good timing can be beneficial, it isn’t everything. For example, if you are financially secure, you can buy a home at any time. Or if your growing family requires it. So, each time you think about investing in a house, first ask yourself if right now is a great time to purchase a home – for you. All the other details can change in the blink of an eye.

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