Remember how tough it was to find homes this Summer with all the competition that squeezed the best ones out of the market?
Home values rose, interest rates dropped and the Summer sun lit up the housing market, flooding it with buyers.
But now, Winter has chilled market activity. Many homebuyers are holding off to warmer months before they make a home purchase.
However, this may not be the best decision.
Imagine you find a perfect home. You tour it and meet with your realtor several times. You make your offer. Yet, at the same time, another family makes theirs. Now, you’re smack-dab in the middle of a bidding war.
The price of the home gradually rises out of your comfort zone and you lose the home of your dreams to the highest bidding family.
Do you really want to pay more than a home is worth or risk losing it to someone else? Don’t think so.
Avoid this and buy your home now, while competition is minimal.
It’s December, and mortgage rates for the popular 30-year fixed loan are still under 4 percent. Actually, the current rate of 3.75 percent has been steadily dropping. We’ve predicted in previous articles, such as this one that the rate will more than likely increase by early next year. So, your window of opportunity to nab a great interest rate and save money on a home is gradually closing.
We all remember how it felt to be a kid waiting on Christmas to finally arrive: sort of the same way it feels to be an adult waiting on a home loan to get approved. Take advantage of a slower housing market now, and reap the potential rewards of a faster closing.
Think about it. Mortgage Loan officers are not as busy with home loan closings as they were this summer, so logically, this should lead to a faster closing.
Yes, this time of year is expensive with Christmas gifts and such, but look at what’s not expensive right now. Gasoline. In West Virginia, most stations are offering it for under $2. The economy seems to be solid as jobs continue to grow and money continues to flow, according to the October Employment Report by the US Census Bureau.
So, if you have a solid job, then why would you want to have a roommate, live in mom and dad’s basement or live under an apartment landlord when you could own a home? After all, it’s a lot cheaper to own a home than rent one right now, not to mention all the equity you could potentially build by doing so.
Perfect Time is Now
According to a survey conducted by Realtor.com, people plan to buy homes in Spring and Summer. This typical plan may sound great, but here’s the problem: Inventory isn’t likely to be higher this coming March and April than it is this Winter.
Also, there’s the issue of supply and demand. Yes, inventory should grow with warmer weather, but will it grow enough to meet the demand?
Chances are, the number of great homes to choose from right now will be higher than four or five months from now, when every buyer floods the market.
So, if you’re waiting on Spring or Summer to get that dream home, we ask: Why? Interest rates are down and the number of quality homes are up. So, jump into the West Virginia housing market today.
By Justin Waybright & Chuck Boggs