For so many people who were thinking about buying a house over the past several months, the unknown future can be especially challenging. I know a common phrase people throw around is "I don't have a crystal ball" when asked what the economy will do. That might cut it under normal circumstances, but in light of the drastic shift we've experienced due to Covid-19, we've shifted the way we make decisions about the future. We're beyond th
e hopes of a crystal ball and instead, favoring educated reason.
So- is it a good time to buy? How can I make the right choice?
The biggest question to ask yourself is: How long do I anticipate keeping this home? Although life may have unforeseeable circumstances, do you plan (under normal circumstances) to stay longer than 3-5 years? If the answer is YES, then YES, it is still a good time to invest in a home. If you want to know why, keep reading.
In a word (or two rather): Interest Rates. Interest rates affect how much it will cost to pay back the loan you will receive. Even just a few small points of a percent makes a very big difference what your monthly payment will be, and ultimately, what the final pay off balance is. If you are the type of person who enjoys going down a Google or YouTube rabbit hole, search up "amortization schedule". You might be surprised the difference between a loan at 3.95% vs 4.00 %.
The good news? Interest rates are still very low, so it costs you less to borrow more money. If you plan to keep the home, then taking advantage of the low interest rates will be a major savings.
There will always be people who need to move, so homes will always be for sale and buyers searching for them. Though there has been a dip in the industry, this can be a major opportunity for those who choose to Keep Calm and Carry On. It's been a "Sellers Market" for a while, which means there are not many homes for sale compared to how many people want to buy them. It's been almost certain that buyers go into writing offers with their agents knowing that there will be many other offers submitted on the same property. The slow down in buyers shopping means that the buyers who are still out there have less competition and can typically negotiate better terms.
If you would like more information about buying, contact me below on the website, email directly at EndresRealtyGroup@gmail.com, or give me a call: 858-683-3299.
Be well, and I look forward to sharing in your home search when the time is right for you, whether that is Right This Instant, or a few months from now. Happy Hunting!