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Buy a House

Is Now the Right Time to Buy a House

If you are anything like me, you may have considered home buying in the recent few months. I have mainly considered it simply because I am sick of throwing away money into rent. However a lot of the decision needs to come from your situation in life and if you are able to stay where you currently are for at least 5 years. According to CBS news they claim that Summer, so just a few months ago, was a busy time to buy a home and that you should wait a bit. There’s many reasons for this.

Buy a HouseFirst, since early May the interest rates on loans were steadily climbing and reached about 4% for a 30-year fixed mortgage. Even though this is the case, it has been noted that the Fed will continue buying bonds each and every month that’ll help to keep interest rates low at least until around mid 2014. You may want to keep in mind that chances are the interest rate probably won’t go too much lower. 4% isn’t too bad and you may want to just take advantage of it says Amy Cutts who is Equifax’s chief economist.

Furthermore, a change in a few percentage points won’t really change much in real dollars so it shouldn’t be too concerning. Another reason why you might want to wait it out a bit before buying is because home prices will hopefully level out over the next little while. According to the Case-Schiller home price index the prices of homes has increased by more than 10% over the past year so waiting might be a good thing.

Many people have said that is incredible and it’ll take a big boom in the economy to sustain that kind of growth, so over the next little while chances are that you will see the prices of homes dropping some. Don’t think this means we are going to tumble into super low rates, but it may drop a bit. You also may want to wait it out a bit so that there’s more inventory on the market. The inventory does affect the home prices. The limited supply of homes for sale is what largely amounts to the increase in price. It is a simple supply and demand lesson of economics. Keep in mind that between March and April of this year inventory grew by 6.4% so keep in mind that month to month things change so you may not be waiting for very long to see a real difference.

That being said, timing matters. Keep tabs on what is happening around you. Since there is currently low inventory, less than desirable homes are getting sold for higher prices because there is a demand. Wait it out. Play your cards right and find what is really truly right for you. Leverage Real Estate is a great resource to find homes and see what is out there. You can find some great options all around the world! They navigate the process for you so it is easy and enjoyable for you as the home buyer.

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