Should I buy NOW or NEXT YEAR?

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A question many of my clients have been asking themselves. There is a lot to consider when deciding to purchase a home: personal financial situation, home prices and values, interest rates. Being well informed is crucial as not everything you hear or read on the Internet tends to be realistic. My advice is to always talk to professionals (realtors, mortgage officers, insurance agents), who can give you the most up to date information and advice. With that said, here are few things to consider when buying a home that will help you decide whether to act now or wait.

Mortgage Interest Rates

Rates have increase by a close to a quarter % over the last several weeks. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors are all calling for mortgage rates to rise another quarter of a percent by next year to 5.2%. Even though you might have missed the lowest rates offered, they are still historically low compared to rates in the 80s and 90s.

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.


The inventory of homes for sale had been on a steady decline for the past 3 years. We are currently under the “normal” six months supply, which is pushing the home prices to increase. Probably all you have been hearing lately is “It’s a seller’s market”. However, last few months we saw a shift in supply which, if continued, might bring us closer to a “normal“ market. As of now though, buyers demand is greater than seller’s supply which makes the market highly competitive.

Your personal situation

Lastly, you personal situation is very important. Changes in your life call for changes in your financial decisions: Did your family get bigger? Are you tired of trowing your money away by renting? Does your current home still fits your needs? Indeed there is a lot to consider. No matter how overwhelming everything might seem at this point, don’t be afraid to ask. I will always give you the most adequate advice. You probably think that my ultimate goal is to make you you buy or sell, but what I really want is for you to make the right choice, no matter what that would be.