Most of us don’t have the luxury to buy a home whenever the mood strikes us. However, there are better times than others to do so. The hard part is figuring out when to buy.
Of course, there are times in life where buying a home becomes necessary (relocating for a job for example). But there are also times when buying a house makes sense.
A Drop in Home Interest Rates
Over the last few years, we have seen absolutely historically low interest rates. Combined with when the housing bubble burst, if you were in a position to buy you have probably done very well for yourself.
The bad news is that those super low rates and house prices may be disappearing and disappearing quickly.
A recent report confirmed that house prices are continuing to rise. In fact, all segments of the housing market are seeing rising prices, but single-family detached homes are rising in price more than condos and townhomes…especially in South Florida.
Also occurring are the rising interest rates. Janet Yellen has already raised rates and is expected to do so again in 2017.
What does this mean for you? It means that if you’ve been thinking about buying a home, now may be the last time you’re going to be able to take advantage of reasonable deals for a while. The rise in home prices and interest rates is expected to outpace wages and personal income.
What should you do?
The First Step: Get Pre-Approval
The first step towards buying a home is getting pre-approved. This means that you need to check with a lender to find out how much you can afford. This also is an important step for negotiating. You can click here to read more about the preapproval process.
Next, you need to start searching for homes. This is where we can be a true help. Make sure that you come up with a list of must haves and deal breakers for your home. We can help with this too. We understand the market and deal with home buying all the time. We will be able to help you understand which homes will work for you at market price and within your purchasing power.
Right now, the longer you wait, the more you will end up paying for your home, especially with rising interest rates. Contact us to talk about your options and purchasing a home in Palm Beach or the surrounding areas before it gets more expensive.