10 Reasons You May Want to Buy A Home Now
Thinking about buying a home? Timing is everything.
Like me, you may wonder why anyone would embark on a home search during the “most wonderful time of the year.” There are family, friend and colleague festivities to attend. There are New Year’s resolutions to make and life planning is happening. Many of us are thinking “out with the old and in with the new!”
Folks often think that Spring and Summer are the best times to buy, but conventional wisdom can be misleading.
10 Reasons you may want to buy a home now:
- Less competition for existing inventory from owner-occupants.
- Less competition from opportunistic demand (investors). Essentially, investors tend to come to market at this time of year. Since they need to see a profit from their purchase, an owner occupant buyer may have a more attractive offer.
- Home prices are set to increase in the Pacific NW, particularly in King, Snohomish and Pierce Counties. By mid to late Spring, the surge of pent-up buyers coming to market may cause another feeding frenzy that could artificially spike home prices.
- Interest rates are expected to rise in 2018. Market economists predict rates will rise through 2018, which will see interest rates on mortgages higher. To illustrate, a 25bps rate hike, assuming full pass through to mortgage interest rates (on $500k loan, 30 year fixed) = $26k in additional payments over the course of the loan.
- Home sellers are motivated to get a deal done. They may be estate sales, builders looking to shed inventory to bring on more, families being relocated or other prize takers looking to buy when they feel that the competition is not quite so fierce on the buy side.
- Sellers may prefer to sell to occupants, not investors (particularly during the holidays).
- Issues with the home and its systems are most evident. During the Spring and Summer months, it is easier for potential maintenance and repair items to go undetected. The roofing, windows, HVAC, and drainage all get tested during winter. So, you can rest assured that what you see is what you get.
- Real estate professionals can give you full time and attention. Loan officers and real estate agents have less on their plate this time of year. You may even be able to benefit from offers or incentives*.
- The Spring market will require very fast decision making and action. If this is not your style or forte, the process can be more painful and deflating than at a time where the pace is more measured. Your mind in its “happy place” may make better choices.
- You’ll see properties when they may be least attractive. This may be helpful in preventing judging a book solely by its cover, so to speak. A little bit of flowering landscaping goes a long way to distract from the condition of the home itself.
Why shouldn’t you enjoy that appreciation instead of waiting and paying for it?! Get in now. Start your nesting plan. Make 2018 the year that you focus on other elements of your life. Travel, entertain friends, pursue your hobbies and enjoy your new-found homeowner status.
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