Buying a house is a huge investment and a significant milestone for many. It will probably be the biggest investment of your life. That said, it is vital to make an informed decision when you take the leap. The shifting sands of the real estate business mean that prices vary not just from one season to the next but also from one week to another. When it comes to buying a house, timing is everything. However, the timing depends not just on the state of the market but also on your financial situation and state of mind.
The butterfly effect of COVID 19 has been felt in the real estate market, making it even more difficult to correctly predict its behavior, which is likely to continue into the next year. There are various factors that you need to consider and evaluate before you make your decision. Read on to find out how to decide when it is the perfect time to buy a home for your family.
The Right Season
Believe it or not, there is seasonality in the prices of houses, and the real estate market experiences highs and lows throughout the year. The seasonality depends on the region you live in, but in general, the summer season is when the most number of houses exchange hands, while in the winters there are a fewer number of houses on the market. This is because mid-summer is a convenient time for people to relocate.
As such, the best time to buy a house is towards the end of summer or the start of fall. You would easily be able to find a significant number of houses on the market with lesser people looking for them. This increases your negotiating power and your prospects of bagging a good deal. There is, however, a significant luck factor involved. If you wait too long, your dream house may end up in someone else’s hand.
But if you jump the gun, you may end up spending a lot more than you hoped for. But the market statistics can give you some idea about how long to wait. The award-winning realtor Leslie Hoke at LasVegasHomesByLeslie.com suggests that Las Vegas condos remain on the market for an average of 47 days before selling. This gives you an idea of how long it is safe for you to wait before the house may go off marker. The statistics vary from region to region, and your local realtor will be able to give you a good estimate.
So, it all boils down to how prepared and convinced you are to make a plunge. If you are financially ready and you find your dream house on the market well within your budget, you can close the deal. But if you have to stretch yourself to get a house that you are not that fond of, it might be better to delay your purchase and wait for the prices to drop. You will have the most negotiating power during the winters when buyers are scarce. If the house does go off the market, you weren’t that into it anyway.
When You are Financially Adept
It goes without saying that you shouldn’t go out on a limb and invest in a house. It is very important to analyze your financial situation before buying a house. The prices of houses vary based on a lot of factors. These include neighborhood, size, accessories, furnishing, public transport access, schools in the area, and so on. You need to prioritize your requirements before you decide which house is right for you.
When you do so, it might just be that you are not financially ready to invest in one. Settling for a lesser house than you planned for can be a costly mistake. When you are buying a house for your family, it is a long-term investment, and you don’t want to enter into it half-heartedly. It is better to wait out and save a little more to be able to afford the home your family deserves. You should also have a stable income source when you decide to invest, even if you have saved up a reasonable amount.
When making a real estate investment, there are various factors you should account for. If you plan to sell the house in a few years, it is important to see if that particular house would be easy to sell. This mainly depends on the house and its neighborhood. You don’t want to end up selling the house for lower than it is worth. You should also look at the property taxes, the utility charges in the area, and the mortgage rates.
The Right Year
The right year depends more on you than the situation of the market. The right year to buy a house would be when you are ready. Although the real estate market changes every year, the changes are gradual. Due to the COVID 19 pandemic, this year has seen a slump in the mortgage rates, and this year would have been a good time to invest. However, the dawn of 2021 is almost upon us.
The recent announcement of vaccines by Pfizer has also affected the market and has brought about a surge in the market. But it is difficult to predict what 2021 has in store for us. Thus, waiting for the right year in terms of prices would be a fool’s errand, and in waiting too long, you could lose money in the form of equity. So, although a general trend can be observed, it is difficult to predict which year would be good to invest in a home. It is you who has to decide on which year would be the right year for you.
Buying a home for your family is a major step, one that you should take after due consideration and deliberation. Only you and your family can decide when it is the right time to do so. However, you can benefit from analyzing the real estate market and placing your bid in the right season. Hiring a realtor to guide you will definitely help. It may cost a little more initially but would save you a lot more over the investment period.