Is Now the Right Time to Buy on the Property Market?
We’re understandably obsessed with owning a home in our society, but is now the right time to dip your toe into the property market?
While looking to purchase a home, buyers often need to evaluate the factors like interest rates and market trends. Opportunities like seasonal trends and price drops can also play an important role. Understanding such concepts usually allows you to make informed decisions in terms of buying a home. Additionally, it might become essential for you to look at the strength of inventory of homes for sale las cruces or elsewhere so as to be aware of the favourable period for buying a home.
The Price Rises Are Behind Us
2014 was a year of never ending price rises in the housing market, or so it seemed. But, luckily, those soaring prices seem to be a thing of the past, for the time being at least. This means now could be a good time to buy a family for your family. But it doesn’t necessarily mean that now is a good time to invest if you’re looking for quick profits.
The fall in prices in a lot of areas will be welcomed by a lot of people, but not those looking to buy and then sell. However, it could be a good time to buy if you’re a landlord. The rental market is booming for landlords, and your rental income should increase if you put a new property on the market right now.
Mortgages Remain Unaffordable Though
The fact that house prices are no longer rocketing is, unfortunately, offset by the fact that mortgages aren’t becoming any more affordable. This means that, for a lot of people, is as unaffordable now as it was last year at the peak of the rising house prices. Mortgage interest rates are rising, and there’s no sign on the horizon that it will become easier to get a mortgage anytime soon.
So, it’s a case of good news and bad news arriving at the same time. Things could be worse, but they couldn’t certainly be better too, especially for people looking to get onto the property ladder for the first time.
Do Your Research Beforehand
There is no blanket answer to whether now is a good or bad time to buy a home, and that’s largely because prices and value differ depending on location. You should do as much research on your chosen location as possible before you buy. Besides doing your own investigation, you can also consult a Buyers Advocate. They are entirely focused on the buying side of the real estate market, hence, they can offer services such as property searching, inspection and evaluation, and negotiation with the seller. As they usually deal in a particular location, a buyers advocate will have more knowledge of the area and can offer local insights. This means that you can make informed decisions, save time on your searching, and have someone who represents your side of the deal.
Having said that, smaller cities are looking like good investment locations at the moment. Being on the lookout for emerging markets that are on the rise is always a good idea. You can buy a home in these locations and then within a couple of years the house could dramatically increase in value.
Renting is Not an Attractive Alternative in 2015
For people not interesting in making a profit, the choice is between buying a home and renting one. It’s not an easy choice, but right now buying looks like the better option. Renting is becoming more expensive, and the market is on the side of the landlord, not the tenant.
Even when you add in the cost of surveys, homeowners insurance and estate agent fees, buying still looks like the smartest option right now. And until rental costs start to slow or fall, this will remain the case.
The conditions for buying a home aren’t exactly ideal at the moment, but they seem to be marginally improving. Remember to think the decision over carefully before reaching a conclusion.