Wheatland Realty agent Nicole Tudisco answers the question on most buyers’ minds right now. Buy now or wait??
I was just asked this question from a buyer who has about 6 months of flexibility in his timeline to purchase a new home. I suspect there are plenty more potential home buyers who wonder if the “best deal” is yet to come. I compiled a little “food for thought” as you weigh the pros and cons of waiting for the desperate winter seller.
- In winter there is lower inventory, which means you will have fewer homes to choose from. Sellers understand the winter months are slower and often times are prepared for the down turn. Plus they simply do not want the inconvenience of showings during the holidays. Many will take their home off the market only to re-list in spring.
- A seller can only be as desperate as they have money to pay for that desperation. We all know in recent years the downturn has left many homeowners stuck because they owe more than the home is worth. Many owners are just now getting to a break even place where they can sell for fair market but wouldn’t have the luxury of anything below market.
- If you are going to stay in the home you buy for the next 15 years or more, the purchase price difference now and 6 months from now will most likely not be significant enough to make a big enough impact by the time you sell in 15 years. Remember residential real estate is typically intended to be a long term investment.
- The real unknown 6 months from now are the mortgage rates and right now they are still pretty low. Even less than a 1% change can make a significant impact on that 30 year monthly payment.
As you know there are is no crystal ball but we do know that right now there are plenty of sellers with their homes on the market that need to move. I have seen many price adjustments in the market lately. If the market stays flat it will only create pent up demand in Spring 2015 when everyone is coming out and when that happens prices and rates will rise.
Have Questions? We have real answers.
Nicole and Tony Tudisco, Realtors