Today I wanted to point out some misconceptions about the market from the perspective of a buyer.
Why is now a good time to be in the market as a buyer?
- Seasonality of pricing. During the spring and summer months, the median price is higher than it traditionally is during the winter. According to Dane County data and data from the National Association of Realtors, you’re likely to pay less for a home this time of year than any other time.
- Less competition. There are fewer buyers in the market at this time for you to have to compete against. When sellers have fewer buyers interested in their home, you’re more likely to get better terms on a home you buy during the winter.
- Interest rates went up and will continue to go up. Rates went up after the election and this affects affordability. Every 1% that interest rates go up increases a buyer’s mortgage payment by 10%. Imagine how much this affects how much home someone can afford to buy! When rates go up, housing really affordability suffers. Since median price is also traditionally higher in the spring, it’s a double-whammy. Buyers might want to buy a home now before rates inevitably go up again and prices go up in the spring.
I hope you found this info helpful if you’re considering buying a house. If you have any questions I can answer, don’t hesitate to give me a call or send me an email. I’d be glad to help.
As we wind down the year, I also want to take this time to thank you for your support in 2016. It was an amazing year for our team and we appreciate your business and your referrals. I hope you and your loved ones have a safe, healthy, and happy New Year!
I look forward to helping you in 2017.