Why Now Is Still a Good Time to Buy

The question is frequently tossed about: “Is now a good time to buy?” We wonder whether it is a buyer’s market or a seller’s market, and more people have backed off from buying in recent years as the supply of houses has remained short, housing prices have remained high, and interest rates have steadily risen. We are no longer in a time from decades ago when you could buy a three-bedroom single-family house for under $150,000 in California. Nor are we in the days of 1.5% interest rates. The cost of living has risen across the board, which has made some hesitant to buy a home. All of these realities and sentiments are understandable.

Given what we have to work with today, it is still a good time to buy a house for those interested in homeownership or investment. We are currently in a shifting space in real estate that should give hope and a window of opportunity to buyers. This window is based not only on what we have to work with right now but also on what is evidently coming in the months and years ahead.

For several months, the Federal Reserve has steadily raised the federal interest rate, which drives all lending rates in the industry. We have seen rates on car loans shoot up, rates on credit cards go even higher than usual, and mortgage rates have risen into the 7% area. Now, we are seeing those rates have come back down. Sure, rates are still higher than a year ago, but after weeks of climbing, you can lock in a conventional 30-year fixed-rate mortgage at 6.71%. That’s good news for anyone who’s been eagerly waiting for a downward trend in interest rates. If you’re ready to buy, see your lender and get pre-approved. The more quickly you move, the more likely you are to catch these rates while they are on the lower end. 

Plus, if you are a first-time homebuyer, you may qualify for an even lower rate. The Federal Housing Association offers programs that help buyers get lower interest rates, lower down payments, and may even cover closing costs. When you get approved for a program while interest rates are on the lower end, you stand to save even more money in the long run. You may also qualify for programs available for specific careers or past experiences. Teachers, firefighters, police officers, nurses, and veterans have programs available to help you get into housing. Check with your trusted lender to see if you qualify for assistance to make buying a home now easier and more affordable.

The housing shortage has been going on for years, with sellers having tremendous holding power and buyers sometimes competing with dozens of other potential buyers to get into a single house. That reality does not look to be going anywhere anytime soon. The truth is it will likely continue to get worse. That fact doesn’t seem to be good news for buyers or explain why now is the time to sell, but buyers have a window right now with lower interest rates and a lull in the market. The argument is because the shortage will persist for some time, and interest rates are low for the moment, there is no better time for the foreseeable future to buy. Work with a trusted lender to get pre-approved and a trusted realtor to find a house in your budget and get yourself into your next home. If you were waiting for the perfect moment, it is not likely going to be any time soon. There is no time like the present.

For months, we saw homes selling for closer to the asking price and fewer buyers to compete with. Today, Bankrate reports a sharp increase in homes sold well over the asking price. Sellers are starting to get wind of their power again, meaning they are willing to negotiate less with buyers. Summer is a critical time for families to want to get their kids moved into a new home before school starts, so demand will only rise in the next several months. A buyer’s best bet is to get in before the rush and work with a trusted realtor to negotiate for you.

Perhaps the biggest reason to buy a home now is that housing prices are expected to rise. It is highly unlikely they will drop in the next several years, which means any house you buy that you can afford will be an investment. In the next year alone, housing prices could rise by as much as 15%, and even if they manage to stay steady, they are highly unlikely to decline. This truth means if you buy a house today, your investment will likely appreciate by a lot in a short time. You cannot argue with the numbers, and you can’t say that about continuing to rent.

The bottom line is this: if you can afford to buy and your credit scores will allow you to get the lowest rate on the market, if you have an emergency fund in place, and you have the money for a solid down payment, now is a great time to buy a house, and it is unlikely to be this good again soon. Of course, buying a house is always a personal decision, but for first-time homebuyers and investors alike who have been waiting for that perfect moment, let this be the sign that the moment has arrived.

If you’re ready to make your move into the Coachella Valley area,  Team Armstrong is the trusted realtor to have by your side. With two decades of experience in real estate here in the desert and a reputation for honesty, integrity, and getting his clients what they want, Blair brings his expertise to every client relationship. Allow him and his team to serve your best interests on your journey to buy your next home. Contact Team Armstrong today and start searching for homes for sale in Coachella Valley.