Home Buyers are Asking Whether They Should Buy a Home Now or Wait for the Market to Drop
Hi there! So the question I’m receiving most frequently right now is coming from buyers. They want to know if they should buy a home now or wait for the market to drop.
The Market is Slow
We are seeing a little bit of slowing. I think it’s more because it’s the end of summer and we’re just past the Labor Day holiday. It’s always slow around this time of year.
We’ll have to wait for the next couple of weeks to see if it’s a sign of things to come or if it was just because of the summer.
The Great Recession and How it Impacted Home Buying
I wanted to tell you about the Great Recession and a little story about waiting to buy a house. So just before the recession when house prices were really, really high a lot of buyers took the position that they were going to wait for the prices to drop. Well, they dropped all right. The market crashed.
It left buyers in three different situations:
- There were the buyers that had no money; they lost their job, so they couldn’t buy a house.
- There was another set of buyers who had money but they were too afraid to buy a house, which is completely reasonable. It was a very, very scary time.
- And then there were another set of buyers who had the money they wanted to buy a house but they couldn’t. They were ready for the market but the market wasn’t ready for them.
Loan restrictions had gotten so tight. Mortgage brokers had gone under. Hundreds of mortgage brokers had gone out of business. And the banks were making their loan restrictions tighter and tighter. So although they were ready to buy – the interest rates were really good – the market wasn’t ready for them. So you have to keep all these factors in mind. And my suggestion as to waiting to buy a house or buying it now, I dion’t think that either of thoseare the right answer. I think the answer is when you’re ready. After you’ve looked at your finances, you’ve talked to your CPA to make sure that it’s right for you financially in that direction. You’ve talked to your mortgage lender to find out if you qualify. You know that you have the downpayment and that it’s enough to make the monthly payment comfortable – well, sort of comfortable – suitable for you. And you’ve gotten all that information together, you’ve evaluated it and decided that, yes, now is the time to buy. The market is what the market is. You can’t change it and waiting is not always the best option. We are expecting home mortgage rates to increase. We’ve been expecting that for a long time. And although they have gone up a little bit, they haven’t gone up to the degree that we expect them to, eventually – whenever that is. So hopefully that information was helpful. If you have any questions about your specific situation please do reach out. We’re happy to help. And have a great day! Get Our Fall Home Buyer Guide Here
Are you thinking of buying a home in Northern California home in the fall? If you haven’t hired a top producing Northern California real estate agent yet, contact me, and I’d be happy to discuss the real estate market history and the current state of the local market! About the authors: The above article “Should I Buy a Home Now or Wait Until the Market Drops?” was provided by Vicki Moore of eXp Realty California. With over 20 years of experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Northern California areas: Roseville, Rocklin, Granite Bay, San Mateo, Foster City, Pacifica, Burlingame, San Carlos, Belmont, Redwood City. © 2018, Vicki Moore. All rights reserved.