This time of a year, you may have tempting thoughts of buying a new house. Undoubtedly, it’s a good thing to say bye to a year behind you with a new home. Is the moment right to do it now? Or perhaps it is better to wait and see what the real estate market has to say in 2018? Let’s try to solve this puzzle together.
Home pricing trend is slowing down, but this isn’t something to worry about in 2018.
The house pricing had the time of its life a couple of years ago. Now, we are witnessing a cooling trend. The prices are slowing down, but not at a quick and sharp rate to make you worry about it. So, if you are planning to play a waiting game when it comes to your home, it may not pay itself off as you hope.
Think nationally, but research locally.
It goes without saying that national trends are eye-catchers and headline-makers. However, the truth is that every potential home buyer needs to keep an eye on what’s happening at the local level. There are some local “anomalies” that can strongly contradict the overwhelming national trends. You have every right to take advantage of them if they benefit your investment plans.
The mortgage rates play their own game.
At the beginning of 2017, we had an average mortgage rate for a 30-year payment period around 4.20%. Now, we are somewhere between 3.80 and 3.90%. The trouble is that these mortgage numbers can be tricky and misleading at the end of the current year. If the mortgage rate is the most important factor for you to make up your mind regarding a new home, then now is the time to make your move. Otherwise, you should wait and see what’s going to happen with the mortgage rates in 2018. One thing is certain. The changes introduced by the Federal Reserve combined with the economy that’s getting stronger, you can expect these numbers to go up in 2018.
The buying and renting costs are walking shoulder-to-shoulder.
When you hear something like this, the natural reaction for every potential new homeowner is to hold his buying horses. What’s the point? Right? Why should you buy a new house if renting costs are acceptable? Where’s the motivation to risk it all by buying a new house? The final call is entirely up to you. The trouble is that this relationship between buying and renting costs can be quite unstable. So, beware and don’t get carried away.
The final verdict: buy or wait?
The more you read and go deep into a market research the more reluctant you are to become. Again, this is a natural response to situations such as these. The best thing you can do is to do your research homework properly and make the call you feel the moment is right.
There are no guarantees. So, fingers crossed!