Does It Make Sense To Buy Now? (In A Buyers Market)
Low housing inventory can create a seller’s market. This is great if you are selling but if you need to purchase do you really win? The answer right now is YES! Let me explain…
While you may use any gain selling to simply pay more for a new home the win is achieved by purchasing with a lower interest rate today than what Freddie Mac predicts you could be paying next year. Corelogic is also predicted that prices could rise nationally up to 5.3% this year. What would that look like in a monthly payment? Here are a couple samples..
I realize this is a one sided argument. Isn’t this the type of appreciation that caused the 2007-10 market crash? My answer to that is that the housing appreciation itself isn’t what caused a real estate market crash. The inflation at that time was poorly propped up by the lack of lending regulations and manipulated by shady appraisals which could only last so long. This is no longer the case.
Therefore, if the sources of predictions can be trusted and prove to be true then it is best to buy now.
What do you think?
Contact me if you are interested in a buyer consultation!