If you've been putting off buying a home, this may be a good time for you to start looking.
Many people have put off buying a home in recent years because of the fear of losing their jobs, have already lost their job, or because they are simply waiting for others to start the home buying trend. Some are just waiting for home prices and interest rates to drop even more than what they are now.
Whatever the reasons you have for putting off buying a home, if you can afford it right now, it is definitely a buyers market. Home prices have fallen over the past three or four years and interest rates are at the lowest they have been in a long time.
This is a great scenario for many potential home buyers but times are changing. As the economy picks up steam and jobs become more available, it will create a situation in which there will be more buyers and a less available inventory of homes for sale.
As the pool of home buyers grow, the housing market is sure to tighten up and it will slowly become a sellers market again, which in turn will drive housing prices up and send interest rates soaring. If you wait too long to get into the housing market, you may find yourself competing in a market where there are fewer homes to choose from.
People are starting to take a serious look at the real estate market with dreams of making a move. This includes people who already own a home but may want to upgrade to a larger one or who may just want to move to a different neighborhood.
Many other potential home buyers are those who are contemplating buying their first home and feel that now is the right time to buy a place to raise a young family.
Right now, the market is ripe for first time home buyers because prices are so low. A first time buyer may be able to purchase a home in a neighborhood that was out of reach, price wise, just a few years ago.
One thing to worry about is that in many areas, the drop in housing prices has leveled off, and in some cases, prices have actually started to inch upward. This may or may not cause a buying frenzy, but if the past is any indication of what might happen, higher real estate prices and higher interest rates may be headed our way.
What does this mean for you if you are waiting to buy a home? It means that while you are waiting, the economy is recovering, and what you can get for your money today may be a thing of the past tomorrow. Inflation may start to kick in and you may find yourself getting less for your money in terms of price, neighborhood, and square footage.