Should you buy a house right now? The short answer is: maybe. Below are a few things to think about as you make your decision.
Should You Buy a House When Inventory is Low?
One thing to consider is that the number of homes on the market right now is relatively low and going down. As we get closer to the holidays, most people don’t want to move into a new home. They’d rather hunker down, enjoy the holidays, and worry about moving next year.
After all, have you ever been packing boxes on Thanksgiving, or loading a truck a few days before Christmas? Probably not. Instead, you were probably listening to holiday music and spending time with family and friends.
The downside to buying a house when inventory is low is you’re less likely to find that perfect home that had all of the features you wanted. For example, maybe you wanted a house with a big fenced-in backyard, four bedrooms and a basement in a certain part of town. Now that fewer homes are available, you may have to settle for a house with all of those features but in a different part of town.
Should You Buy a House Now with COVID Around?
COVID-19 is still around. We were hoping we would have beaten this thing by now, but that’s just not the case. Some health experts are worried that the colder weather – flu season – may cause another spike in cases.
So is now a good time to buy a house even with COVID around? Our answer is that it depends on your job security. Do you have a job at a company that has still done well during this pandemic? For example, maybe your company makes some of the materials sold to Home Depot or Lowe’s, which have profited from this pandemic due to more home projects going on .
In that case, your job may be pretty secure.
On the other hand, maybe you work in an industry that has been drastically impacted by the virus. The airline, event, hospitality and restaurant industries were hit hard and will take a while to recover. Those jobs are probably less secure right now, so it may not be a great time to buy a house.
Should You Buy a House Right Now? Interest Rates are Low!
The best thing about buying a house right now is interest rates are very low. No matter what type of property you buy or where you buy it, you are essentially getting it on sale if you purchase right now.
For example, let’s say you’d purchased a home for $200,000 at 4.5% interest. In that case, your monthly payment would be about $1,013 per month. But if you bought the home right now and got a 3.5% interest rate, the monthly payment would be about $898.
That’s about 10% off, letting you save over $100 per month! So right now is a great time to buy a home in that regard.
Should you buy a house right now? Maybe. If your job is secure and you’re willing to take a house that doesn’t have everything you wanted, it’s worth seeing what’s out there. Give us a call at 949-392-6400 if you have any questions!