What makes this the perfect time to buy a home?
Right now it’s a new and different Buyer’s market. A Buyer’s market in the past usually meant that Buyers were able to purchase a property at a discounted price due to an abundant inventory of houses for sale sitting on the market. The abundance of inventory was usually due to higher interest rates that made purchasing difficult for most Buyers. The few Buyers that were able to buy could take advantage of lower pricing but had higher monthly payments due to higher interest rates, kind of a win/ lose for the Buyer.
Think about it this way: The amount of your monthly mortgage payment is based on a formula that includes your loan amount and your interest rate. As rates increase, that monthly payment allows for less of a mortgage amount. As rates decrease, you can borrow more money for the same monthly payment. The market follows that same trend, and often, sale prices of houses will rise and fall opposite rates.
EXCEPT that in today’s market, not only are Buyers taking advantage of the large and reasonably priced inventory, they have access to the lowest interest rates on record.
RIGHT NOW, sale prices are reasonable, rates are record-low and there is a great selection to choose from. It’s a fantastic time for a Buyer to get more house for less money. Give one of our Realtors a call and take advantage of a unique opportunity!
Posted by Paul Walsh