Home prices went up 19.8 percent from November 2020 to November 2021 but that didn’t stop more than 6.12 million homes from being sold!
Are you wondering whether now is the time to buy a new home? If so, you aren’t alone.
In today’s fast-paced real estate market, the decision to buy a home can be stressful and overwhelming. It can also be hard to know whether now is still the right time to buy.
Read on to learn the answer to the question: Is this a good time to buy a house?
Favorable Interest Rates
There has been a lot of discussion in electronic and print media about the state of interest rates in 2022. While the average 30-year fixed mortgage rate is now 4.72 percent, this is still much more favorable than compared to many years past.
The interest rate is the percentage of your loan that you must pay back over the term of a loan. The lower the interest rate, the less money you will be paying on the principal that you borrow.
Although interest rates are expected to rise, if you have a strong credit history you will be competitive for the lowest rates available where you live.
Supply and Demand Drives up Prices
The onset of the COVID-19 pandemic in March 2020 has turned countries upside down across the globe. In the United States, as government-directed shutdowns became the norm in many areas, remote work allowed people to uproot their families and move further from their office.
Even as the pandemic has started to dissipate, it has not slowed down the vast shortages of supply as demand in many areas is at an all-time high. When demand outpaces the supply, this tends to drive up prices, but you can still use these tips to get a fair deal.
The most desirable places to live are expected to continue being in high demand which will drive up prices above and beyond current levels.
Location, Location, Location
There’s one thing that you can never change about the home you buy and that’s its location. If you are looking in some of the most sought-after cities in the state where you want to buy a house, you can expect that you will need to pay a premium to live there.
The most popular states to buy a new home include Florida, North Carolina, and Texas. There has also been a large influx of people migrating to southern states from up north.
Whether it’s because of better weather or more affordable prices (or both), buyers looking for homes in the best locations are taking steps to be competitive in this market.
Some of these include foregoing an inspection or appraisal and making a cash offer above and beyond the asking price.
Is This a Good Time to Buy a House?
If asked, ‘Is this a good time to buy a house?’ you now know that it is based on a variety of different market factors.
Although buying a home in the best areas of each state can be a stressful experience, the lower interest rates and the value that you receive right now make it a choice that’s worth your while.
Interest rates are expected to increase throughout the year and in the future, so it is most beneficial to you to lock in an interest rate sooner than later to get the best deal.
Are you interested in learning more about how to make yourself a more qualified buyer on your next offer? Check out our blog section for posts with tips and tricks to begin putting to use today!