It’s certainly a great time to buy a home if you like low-interest rates, listing prices that have softened and a bevy of housing inventory to live out your dream.
Too often you hear Realtors and Lenders alike boasting about what a great time it is to buy. But, how do you really know when that’s true, what’s the magic sauce that truly makes it the right time to buy?
Well, the single biggest factor that truly dictates when a good time to buy is whether the interest rates (a.k.a the cost to borrow money) are reasonable or low, considering that they constantly fluctuate and are hardly predictable, it makes sense to track interest rates. And currently, the rates are the lowest they have been in TWO years. Now, of course, they will rise again and it will affect your monthly mortgage payment, but that said is that the only factor to consider when buying a home?
Hardly, the next biggest indicator is probably the one that’s most popular and on the lips of every person in or out of the Real Estate industry… Housing Prices & Inventory!
This year alone, we’ve had a dramatic influx of new inventory on the market, mostly due to sellers who have held out over the past year, hoping prices would continue to climb, but to their chagrin, the market has slowed a bit. And a lot like a car dealer trying to clear out old stock, sellers must reevaluate their ask prices to remain competitive in a buyers market.
Now combine where we are on the calendar, meaning the usual spike of new listings on the market and you have a softening of housing prices in Southern California.
That said, notice I said “softened,” not “dropped,” had prices indeed dropped, they would have dipped below last year’s closed sales price and that’s not the case, they have however stopped climbing at the same rate they were, which in my opinion is a good thing.
The housing affordability in Orange County has been creeping out of reach for many potential homebuyers for the last 10 years so, a subtle correction is just expected, it’s overdue.
These three influences have created the “Perfect Storm of Affordability” making it the best opportunity to purchase your dream home or investment property in Orange County than we have seen in recent years.
And knowing all of this, if you’re still waiting to see what will happen in the market… You’re risking what could be you’re best opportunity to lock in the home you really want at an affordable monthly mortgage payment, a mistake that could cost you for years.
Lastly, if you’re choosing not to purchase a home because of something other than statistics, remember, that due diligence is always your best friend when it comes to making this decision. Contact a Realtor like me to help answer any questions or concerns you have that have been holding you back.
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