Important Things To Consider When Buying A Texas House
Because of mortgage rates being so low because of the uncertainty caused by the pandemic, you may be thinking it might be the right time to consider buying a home. However, experts say you might not want to rush into such a decision. Below, we will be going over why according to real estate experts.
The Housing Market State
While the current market does offer inherent benefits for anyone looking to purchase a home. After all, in March the median list prices were up at around 2.2 percent annually. However, a month later, that number went down to less than 1 percent. This ultimately represented the least amount of growth in the last 7 years. As such, mortgage rates have been at a record low with the average 30-year fixed rates sitting at 3.4 percent for the week leading up to May 1.
Buyers are currently looking for 30-year mortgages and rates are very low. Because of this, it has become an opportune time to effectively purchase a home and take out a mortgage due to the historically low rates effectively outweighing the potential uncertainty that the pandemic has led to.
However, you shouldn’t simply be basing your real estate purchasing decision off this respective price drop. While the home prices in the market are expected to continue to fall around 2 to 3 percent just this year, you will find these prices fluctuating all of the time. You will pretty much always see properties that are priced outside of the market falling. Whereas, you will find properties that are competitively priced in the current market changing in prices very little.
What you really need to look at isn’t necessarily the decrease in home prices, but the increased demand for viable buyers. After all, your home could be competitively priced but you wouldn’t have any demand if there is no one that is capable of affording the home in the current conditions.
What If You Are Able To Find A “GOOD DEAL?”
While you may be tempted to simply jump on the first good deal you are able to find, you don’t want to get fixated on it. For one, you won’t necessarily be limited to finding ‘good deals’ in the midst of a crisis. Ideally, you want to try to identify a home that sits in the spot of being currently undervalued in the market and one that sits in a good neighborhood that has a lot of higher valued properties. This is what we refer to as a ‘diamond in the rough.’ You will certainly be able to find some good deals in the marketplace. However, all of the great deals are usually purchased before they even hit the open market.
Your timing is more important than anything. Even more so than being able to find a good deal. This will usually indicate how well you are able to do on the market. Generally, you will find buyers paying around market value for the homes they purchase, no matter what the circumstances lead to. While it’s certainly true that markets have both peaks and valleys, the real estate market is usually one of the more predictable markets and investments that usually have a steady upward trend. The timing will usually dictate how well you fare in any market.
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