Whether you currently own a house, or haven’t bought yet, there are many different factors to consider when deciding if it’s the right time for you to buy.
No matter your age, there are certain components one should understand before diving into the current market. Some might buy their first house at 25 and others might be in their 40’s or 50’s, which is what you might see the most of in the Columbia River Gorge. Perhaps we are in a higher end / more expensive market, but the age of someone purchasing a home doesn’t matter, as long as you recognize whether it’s the right time for you to buy.
From economic factors to timing to financial components, these will all play a role in your buying experience and determine whether you are successful in purchasing a home or not.
Here are some of the most important elements to review when thinking about buying.
SUPPLY AND DEMAND
“Like with anything, supply and demand play a big part in getting the best deal on a home. You want to have choices (supply), but you don’t want to have to compete with everyone else (demand). You want to strike a good balance without spending too much energy timing the housing market.
That’s why it can be invaluable to work with a local real estate agent when determining the best time to buy a house. Marietta Rodriguez, president and CEO of the nonprofit housing counseling network NeighborWorks America, suggests buyers find a real estate agent specialized in the area they are looking to live,” says Next Advisor.
“Typically, the best time of year to buy a home is in the early fall. Families have already settled into new homes before the school year started. But the number of properties on the market is still relatively high compared to other times of the year, and sellers can be eager to sell.
Keep in mind that while buyers are, on average, picking up better deals in September, this might not hold true for you. The factors affecting real estate prices can be extremely local. You may find more competition for a property half a block farther away from a busy intersection than one right next to it.”
INTEREST & MORTGAGE RATES
“Home purchases are up because of historically low mortgage rates. Being able to lock in low rates can save you thousands of dollars over the life of your mortgage. There are opportunities out there if you have a solid credit profile and a secure job to qualify for a loan.
But you may have to pay more for a home. The interest rate decrease led to a flood of new buyers on the market — but the supply of homes didn’t increase proportionately. This means you may be facing fierce competition depending on the local market. A home that would’ve been straightforward to purchase a year ago may now be inundated with bids, so you may have to act fast.”
“If you have a secure financial situation, you may want to take advantage of historically low mortgage rates. Even then, you shouldn’t feel rushed, as there’s no indication that rates will be going up soon. Making sure you have a good credit score is important , and if not, there are many ways to raise it. You will want to make sure that buying won’t drown you financially, so being smart about cash offers, down payments and loans is crucial.”
Ultimately, the right time to buy a house depends on your finances, goals, and personal timeline. The real estate market has its own patterns and idiosyncrasies, but they aren’t definitive. You’ll want all of your ducks in a row before you get to the offer stage on a home purchase.