Why Now is a Good Time to Buy (even if the interest rates are ‘high’)

As a REALTOR people are constantly asking my opinion.

One of the most common questions is:

When is a good time to buy?

Buying a home is a large investment and each buyer has a unique financial situation that can change the answer to the question, 'When is a good time to buy?'

Interest rates have hit 5%, and are higher than they have been in the last few years. Because of this, many are waiting to buy. Buyers are concerned about the increase in interest rates because it will decrease the amount of home they can afford by reducing the loan amount they will be approved for.

With a healthy economy and inflation inching up, the interest rates are projected to increase by ¾ % in the next year, and possibly even more after that. No one can tell for sure, but the rates will not decrease anytime soon.

To put things in perspective, 30 years ago interest rates were in the teens! Home prices were much less, but the amount of interest on a loan was higher than the rates of today.

So why is now is a fantastic time to buy even if the interest rates are 'high'?

The market is shifting and transitioning to a buyer's market.

With many selling their homes due to higher values, there is a huge surplus of properties for sale.

Large supply + less demand= great time for buyers to be in the drivers seat during a transaction.

In the Fresno, CA area, the amount of homes available on the market has increased by a whopping 37% compared to last year at this time!

Photo courtesy of Fresno MLS

Buyers have more inventory to choose from and can be more selective and discerning in their search.

Buying a home in a buyer's market will allow a buyer to get the most for their hard earned money, have a larger selection of properties to choose from and a greater opportunity to negotiate with motivated sellers.

So what are you waiting for?