The real estate market is one of the most widely discussed markets in the world. Prices can go up, they can go down and trying to find the best moment to purchase or sell a home can leave you running in circles. The truth is the best time to buy or sell all depends on your situation and that is different for everyone. The key is to be informed when making the decision.
There are certain metrics that you want to keep track of when analyzing the current market. The amount of supply, homes available for sale at a moment in time, is one of those metrics. In the last couple of months we have seen supply increase slowly in Pinellas County. The buyer demand, the amount of homes being sold, is another one of those metrics. For this, we look at the homes sold and the number of homes that are pending (under contract) to determine what the next 30-45 days should like like for demand.
Looking beyond supply and demand, interest rates is something that can affect the these metrics. The interest rates today are about 5%-6% and most people are wondering is it still a good time to buy? I think it’s still a YES and here’s why:
Additionally, home values are expected to increase at a more normal rate (3-5%). So if you’re looking to buy a property, NOW is indeed the best time because you will have equity in the next couple of years and be able to refinance when the rates are more favorable.
And I’m not just saying that just because I’m a realtor and I want everyone to buy and sell. That’s not the case.
I want people to make smart financial decisions that are going to set them up for the future. And I’ve had several buyers within the last couple of years, that waited for this “crash” to happen, for prices to come down, for the market to cool off and now they are not able to afford the home that they were looking for in the first place.
So instead of zeroing in on high interest rates as to why it’s not a good time to buy look at the larger picture. Write down your goals, why do you want to buy home, and the pros and cons of buying a home. Once you do that you will know what is best for you. Whether you are buying a home or selling your home.
For more information or to see if the time is right for you to buy or sell, reach out to me, Donnie Hathaway, by email or phone.
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