5 Reasons You Should Run (not walk) Into Your Next Property Purchase
Picture this. You’re running through Liberty State Park on a Sunday morning. Birds are chirping, the sun is shining and an open path stretches ahead. Now, imagine thousands of other runners on the same path. Suddenly, this becomes a very different experience – more competition and pressure, less space and time to run.
Forbes, Zillow and even the Fed have all told us that interest rates are about to head south. So, we should wait to buy, right? Wrong!
Here are our TOP 5 REASONS why the best time to buy is BEFORE the interest rates come down.
- Property Prices: As interest rates fall, more people are encouraged to buy homes or invest in property – remember our marathon?! If sellers see a herd of humans running towards their property, this demand can drive prices up. Bottom line, securing your place in the race before the rush can snag you a better deal.
- Beat the Bidding War: Current mortgage rates have pushed many would-be homebuyers out of the market. When rates drop and those buyers enter the market, multiple offers ensue, and thus, bidding wars. Not only do these battles drive prices up, they also require buyers to move very quickly and often make difficult concessions. If a Sunday morning jog is more your pace, opting for a pre-race headstart may be the ticket.
- Healthy Inventory: Housing inventory has rebounded since the COVID market, but is still hovering at about 50-60% of what was available in 2019, according to a recent interview by CBS News. Add in all the homebuyers waiting on the sidelines to this picture, and then there’s even less homes to go around. Having a healthy variety of homes to choose from is usually key to a successful purchase.
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Rising Value: Historically, home values go up over time. This means, the sooner you buy, the sooner you can start gaining equity. This also means, the longer you own, the more equity you gain. Crossing that starting line early is likely in your best interest.
- Refinance Anytime: Mortgage companies have made it easy to refinance with changing market rates. Many will even waive fees involved if you stay with the same lender. When the time is right, think of it as a cool drink of water along your homeownership journey.
The window of opportunity is open, but it won’t stay that way forever. Buying a house or investing in property before interest rates drop can be a strategic move with significant financial benefits. With reputable sources and real estate giants pointing towards a potential decline in rates, now might just be the perfect time to make your move. So, don’t wait too long—run your race, and watch your real estate dreams turn into reality.
