The property market in the US continues to boom. After almost a decade of strong growth, the bubble does not appear to be bursting anytime soon, despite the impact of the COVID-19 pandemic.
But buying a house is a huge commitment. There are many factors to consider in deciding when to buy a house. Read our top tips to help you make the decision about when the time is right to take the plunge!
Why Buy a House?
You might be wondering about the pros and cons of property ownership as a whole. While it might seem like a big step, there are huge benefits to owning your own property.
Your monthly payments are predictable and you’re building equity in your own right, rather than paying off your landlord’s mortgage. You can make the place your own, and lay down roots. This is particularly important if you’re thinking about starting a family.
When to Buy Your First House
There are a few readiness factors to consider when it comes to buying your first property. Do you have reasonable stability in your job? Are you sure about the type of community you want to live in? Of course, age is just a number, and while the average age for the first purchase of a house in America is 34 years old, some will be ready at a younger age and for others, they might need a few more years.
Financial readiness is also a major consideration. You’ll need to be able to demonstrate to the mortgage lender that the monthly payments are affordable and assure them that you aren’t going to default. You’ll also need a down payment, probably of around 5% of the total purchase price.
What About Market Trends?
Whether you’re a first-time buyer or a seasoned homeowner looking to move house, figuring out the best time to buy can be challenging. One thing to consider is the size of the inventory available on the market locally – that is, how many houses are available right now.
If this number is high, that indicates that it’s what’s known as a buyer’s market. The number of houses available may be higher than the number of people looking to buy, which indicates that you might get a good deal. If the situation is reversed and there are very few properties available, then the sellers have the upper hand.
You’ll also want to keep abreast of how things are going in the wider economy. Generally, if a recession is in the offing, this will favor buyers. This is because people are less willing to spend money so there are fewer buyers competing for properties. Interest rates tend to be lower too, which makes borrowing more affordable. All these factors can help you decide when to make an offer on a house.
Deciding When to Buy a House
Making a decision about when to buy a house can be very challenging, but we hope that this article has helped you to weigh up the things you need to consider. It’s a big step, but also an exciting one!
If you’re looking for a realtor in Montebello, CA, then don’t hesitate to contact us to discuss your requirements. We can’t wait to help you find your dream home!