Wednesday, December 8, 2021 / by Jordan LaFond
Rooftops blanketed with snow, lights strung, and the smell of winter is in the air. The holidays are among us, leaving homebuyers thinking about the age-old question; Should I wait to buy until the spring? In this article, I will share some need-to-know tips to help you buy a home during this season. As a local Vermont Realtor, I would like to share the top 3 reasons you should NOT wait until the spring to buy!
The Market Cycles
Every year, just like the outdoor temps, the real estate market begins to heat up in the spring, and we see a lot more inventory come to market. This pace typically lasts through the summer, and as we approach the end of the fall, the market slows down, and housing inventory starts to decrease. This cyclical trend is the biggest reason why buying NOW should be a strong consideration for anyone considering making a move. Most buyers follow the same market cycle and choose to wait until spring to buy- meaning if you also wait, competition for homes will be much higher. Right now, buyer competition is at its lowest cycle, which can help you secure the home you want for the right price. With such tight inventory in the Vermont market, your chances of landing a home are much higher if you buy now.
Another reason to consider buying right now is that interest rates are still low, which means you have more buying power. Most homebuyers finance a portion of their home purchase since many Americans do not have the cash to buy a home outright. Since nobody can predict what will happen in the spring with interest rates, it is a risk if you choose to wait to make your purchase. Should the rates rise, your buying power will decrease. On the contrary, if rates decline, you may have more buying power for a home. If you want to understand how interest rates affect your ability to buy, check out our previous blog here.
Putting Your Money To Work For You
If you are currently renting and contemplating waiting until springtime to buy a home, you may reconsider. Each month you pay rent, you are footing the bill for your landlord's mortgage, and losing out on equity that could go towards an asset, aka your home. When you buy a home, you put your money to work for you! Houses tend to appreciate year over year; look at how much they have appreciated from 2020 to 2021! Each month, paying your mortgage will knock down the principal balance. When it comes time to sell, you will have paid down some or all of the principal, and your home likely will have appreciated. Thus you will have an asset worth more money than you started with to apply toward your next investment!
If you are thinking of making a move on some real estate, the time is now. There is less competition now than there will be in the spring, interest rates are currently low, and homeownership means putting your money to work for you. Call me today to discuss your options!