3 Reasons NOT to Wait Until Winter to Buy a Home
With home prices continuing to increase it’s hard not to ponder that gnawing question…”should I buy now?” If you’re in a position to buy a new home and wondering if you should wait until winter to purchase, experts are saying that waiting those few extra months could end up costing you. It’s easy to get caught up in the ‘what if’ and maybe even a little analysis paralysis when it comes to buying a home. This is, after all, one of the biggest decisions we make in our lifetime. Striking at the right place and right time can be tricky. Sometimes we need to look at the facts directly in front of us to help with our decision making, rather than letting the unknown hold us back.
So if you’re ready to buy, but on the fence about the timing, we’ve got 3 reasons you might want to consider NOT waiting until winter to buy that dream home:
1. Mortgage Interest Rates are on the Rise
Mortgage rates have fluctuated somewhat over the past few years, mostly within favor of lower rates. This continued mini roller coaster has caused many to hold off on purchasing a home. However, the experts at The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors, unanimously agree that rates will be up almost, if not a full, percentage within this next year. This rise will be gradual, but it’s already started. An increased interest rate will absolutely impact your monthly mortgage payment. If a mortgage is necessary for you to purchase a home, this is an important factor to consider because waiting means that your overall housing budget will likely be affected with a higher long term price tag.
2. The Rise in Home Prices (and values) Isn’t Slowing Down
Current home price tags are immediately in front of us, and it’s usually what dictates our initial decision making. We wonder if we just wait a few months things will change, and the tides will shift in our favor. We’ve mentioned it before, but it’s a fact we all need face — we’re in one of the most desirable locations for prime real estate in the country! Our near perfect weather is no hidden secret and people are willing to pay the price to live here. So while the rise in home prices is predicted to increase throughout the U.S., it’s pretty much skyrocketing in highly desireable locations, like ours in Coastal San Diego County. This predicted rise in home prices has already begun, which means that waiting only a few months to buy that dream home could mean you’ll pay a higher price for it this winter. Just after the holidays, and before tax time. Ouch!
3. Overall, Waiting Until Winter Could End Up Costing You
If we combine both of the above mentioned reasons not to wait until winter to buy a home, you’ll see where we’re going with this third reason. According to industry experts, you’re going to pay more in the long run if you wait until winter (or longer) to purchase a home. That’s the bottom line. Waiting a mere three months to buy a home in the current San Diego real estate climate could end up costing you big time in the long run. If you’re comfortable purchasing a home in the current real estate market (with prices and rates where they currently stand) now is probably the time to buy. If you wait, consider that you’ll likely have to readjust your budget to pay a higher price both initially, and over time. This could also mean the you’ll end up having to sacrifice the type of home or neighborhood you were hoping to purchase in.
Ready to buy that dream home in the San Diego area? We’d love to help you. Contact The Daniels Group today and let us help you find a home for the holidays.
For more of our perspective on this subject read our recent blog, “Is Now a Good Time to Sell Your Home?”