Is now a good time to buy a house? There are a lot of things that factor into that question, but here are a few things to keep in mind as you contemplate buying a home right now.
Low Interest Rates = Good Time to Buy a Home
Interest rates are extremely low right now, meaning homes are essentially on sale. To give an example, let’s consider the monthly mortgage costs of a $250,000 home with several different interest rates.
If your interest rate was 4% and you take a 30 year loan, your monthly payment would be about $1,194. Over the last few years, a rate of 4% would be considered a great rate.
But what if you were able to get a rate of just 3% at 30 years? That would give a monthly payment of $1,054 per month. Maybe a difference of $140 doesn’t sound like a big deal, but that’s 13% lower. That adds up over time.
To summarize, right now is a great time to buy a house because interest rates are very low.
Is August a Good Time to Buy a House?
We’re at the tail end of the hottest time of year for real estate. Summer is by far the most common time to buy or sell a home because kids are out of school. It’s easier for families to move during this time, so there are generally many homes on the market.
A large number of homes is great for you as a homebuyer because you have a lot of options. You can likely find several houses that have the features you need. Want a home with a finished basement? You can probably find one. Looking for a ranch on a cul-de-sac? You can likely find a good one.
Another nice thing is that by August there are generally fewer other homebuyers on the market. Most of them are out of the market by now, as they purchased a home in May, June or July. That means you have less competition, fewer people who may try to outbid you for your dream house.
A third benefit of buying this time of year is sellers may be more motivated to sell. They weren’t able to sell all summer, so they may be more willing to negotiate with you compared to earlier in the season.
Should You Buy a House During a Pandemic?
The coronavirus has flipped this entire country upside down. The economy is on the rocks and millions of people are out of work.
So is now a good time to buy a house? If you aren’t concerned about your job security, it may be a perfect time. Some sellers are concerned about their jobs, or may have even lost them already. They may need to cash out on the equity they have in their home, so they need to sell. In that case, you may be able to get a good deal.
Is now a good time to buy a house? In our opinion, yes. Assuming you have a good credit score and have a stable job, now is a great time since you can get a favorable interest rate and negotiate with sellers. Give us a call at 1-877-556-2655 and we’ll help you get started with the mortgage process.