When is the Best Time to Buy a Home?
It would be easy for someone to put out all kinds of special time frame analysis, stock market information and real estate market trends to try and explain when it’s best to purchase a home. Or one could listen to those who are always saying that it’s the perfect time to buy, for whatever reason they can use to justify it.
The fact is that the best time to purchase a home for your full time residence is when you need or want one. When not talking about investing for profit, but for the purpose of housing your family, your needs come first. It doesn’t matter what the housing price indexes say, what the stock market’s doing or where interest rates are…..to a point. Of course, all this is considered in moderation. If any of these factors are VERY out of the norm to the negative, then you should probably put off your purchase if your needs will allow it.
There are many personal and lifestyle factors that can balance out reasonable negative housing market factors. If your job location changes in town, and you’re driving an extra 20 miles a day to work and back, a small increase in interest percentage can be offset in whole or part by savings in vehicle wear and gasoline. Besides, you can refinance if rates come down, while you’ll never get back the gas expense and lost time away from your family.
When all the current owners and investors are crying over falling housing prices, you’re in the driver’s seat when it comes to being a buyer. You are shopping during a really big sale. And when there’s a slow-down in housing sales, it just means that supply is increasing, while demand is stable or falling. That’s the perfect time to buy. As a buyer, you’re in demand. Sellers will compete for your business.
Okay, so we know that it’s in our favor as buyers when prices are falling or demand is down due to bad news or other economic factors. But what do we do if times are good and housing prices are rising? If your plans are to purchase a home for your primary residence, and you plan on staying in it for several years, you’re usually on safe ground purchasing even in a rising market. Historically, home prices have dipped at times, but they’ve always rebounded over time. Of course, we’re not talking about a market where you’re bidding against several others at prices greater than listed price. Even in markets where buyers are in bid wars, there are usually less popular local areas where prices are more stable and demand isn’t as strong. Look in those areas, even if they’re not your first choice. Sometimes a bargain can be had, making the area decision a good one.
It may seem like any time is the best time to buy. That’s not true, but any time can be a good time to buy if that’s when you need a home and you are careful in your search and selection.
Susan Van Wig©