With rates STILL at historic lows and continued economic growth it remains to be a great time to consider buying a home.
According to the most recent edition of The Stark Company’s Real Estate Market Resource the US economy is in its best shape since the recession “officially” ended in 2009. Job growth is strong, consumer confidence is up, and the stock market continues to reach new heights. With inflation remaining low we are continuing to pick up economic steam.
Also affecting opportunities for homebuyers are the low interest rates. No one predicted we’d still be under 4% but they still are. In fact, a year ago at this time many experts were predicting rates to be hovering around the 5% mark by now. With rates low that means most consumers can afford roughly 10% more home than if rates had risen to predicted levels. In other words, someone qualified today for $200,000 may only qualify for up to $180,000 as rates rise. With the continued increase of median home prices now is a great financial time to get in the game.
What should today’s homebuyer expect?
The challenge will remain in finding the right home. With inventory incredibly low in almost all market segments you will need to be prepared to jump when a good opportunity comes your way. Competition for great homes could be fierce so it’s important to get your ducks in a row before making an offer on a home.
We’re now in a growing economy, with both rates and prices likely to rise over the next few years. That means the old adage has rarely been more true: you don’t wait to buy real estate, you buy it now and then you wait. Buying today is likely to reward you over time. Waiting will probably cost you. We’re now in a seller’s market, and the sooner you accept that fact, the better off you’ll be.
For more on today’s market check out the latest edition of The Stark Company’s Real Estate Market Resource.