We get this question all the time, and we should. There are so many people out there that are hesitant to make this big decision…to actually get out there, put one foot in front of the other, and pull the trigger on this huge purchase. And, it’s OK! This is to be expected. I mean, come on…you are making the biggest purchase of your life! So, when is the best time to buy a house? Well, it’s quite simple…the answer is right now!
For the sake of stability and knowing what is going on in the world and the market, the best time to buy a home is always going to be right now. You know exactly what the interest rates are, you know exactly how much homes cost in your market, and you know exactly what it is going to take to get out of a lease or get moved out of your current living situation.
But, I heard on the radio that interest rates are projected to drop. Of course you did. We’ve all heard that. At the time of writing this article, over the past 3 years, interest rates were supposed to jump to over 6%. There was a mad rush when rates started to tick up a bit, but we never got above 4.5%. And you know what, now we are below 4% again for the first time in years.
The reality is that we have no idea what is actually going to happen with interest rates because we can not predict the future. Sure, we can make a really good educated guess on what may or may not happen, but that is still just a guess. There is no way to predict what is going to happen in any corner of the world at any given time, and there are so many factors that affect interest rates that they could literally go either way, or they could end up staying the same. Right now you know exactly what the rate is, and therefore you know exactly what you are going to spend on your loan.
The housing market works the exact same way. There are so many outside factors that we can only make predictions of what is going to happen with home prices. There could be outside factors that affect home prices in the area that you want to buy…companies could move in and flood the market with buyers, there could be a natural disaster in a different part of the country that causes people to move to your area thus bringing in more buyers, low interest rates could create a surge in buyers and therefore drive up home prices. The fact of the matter is that we just don’t know what is going to happen. That doesn’t mean that we can’t make the prediction, but at the end of the day, we are doing the best job that we can to make a really good guess on which way the market is headed.
Other factors that are involved in your decision of when to buy a home are going to be logistical items. How much does it cost to move out? What is my rent going to be if I stay for longer? How much does it cost to hire movers? There are so many factors involved, and most of these are volatile items. They could literally go either way, and you get what you get later. There’s no turning back and saying, “man, that was way cheaper 6 months ago. Can we match that price?”
When is the best time to buy a house? Right now. At this point in time, at this very moment, you know exactly what the cost is to purchase that home and therefore you can make the best decisions to reach your financial goals.