Given the state of things today, you may think we here at the BLP team are crazy when we say….NOW is the best time to buy a home!
“Have you SEEN 2020?!?!” You might say, “Why makes you think buying a house NOW is a great idea?!?!”
Here are 3 great reasons (but there are more) that NOW is the best time to buy a home:
1. Mortgage Rates still at Historic Lows
The Fed interest rate has been a news topic for years now, so we won’t go into the details and bore you on this front. To keep it simple, the Federal Reserve continues to keep their interest rate low, and although the Fed does not directly control mortgage rates, each tends to trend in the same direction.
That being said, these rates are truly tricky to predict, therefore a great reason to buy now is that there is no guarantee rates will trend lower than where they are right now
2. Sellers are Motivated
Back in October we shared an article on our Facebook page regarding Boston rent declines, a landlord was offering a two-bedroom condo in Dorchester, a true bargain for that area. As of the publishing of that article, a unit that normally rents in two weeks was still on the market about two months later. Check out the article here! https://www.wbur.org/bostonomix/2020/08/28/boston-leases-september-one-students-unemployment?fbclid=IwAR2sHR_RkFoTo263LeszJEs27C1ZcuD7rGnwIXAtTEU5G4fCp2HViPDSrq4
Sellers are feeling that same feeling. Also, like landlords (and some of you reading), they have mortgages and bills to pay (and if they own multiple homes, two mortgages or more). Bottom line? Do your research, and hire a great Real Estate Agent, and your best offer becomes a seller's best offer as well.
3. Increased Home Value when Re-selling
Market shifts are a normal fact of real estate; we here at the BLP team prefer the term market “corrections”. Anyone who has been paying attention to the news in the 2000s has seen the truth of this fact; and 2020 just supercharged an inevitable correction to the market. What you may not know however is that, historically, the downshifts are not as bad when compared to the how good the also inevitable upshifts are.
A common misconception of renters before entering the home market is that owning a home will tie them down to a particular location for an extended period of time. However, on average a buyer will turn around and sell their home every 5 years or so. Another number- the average market shift lasts about 7-10 years…
Why are we telling you all this? Because buying now benefits you further down the road. You can buy, and hold your property and put some sweat equity into it. You could even rent it out while you rent somewhere else, to help with your mortgage payment. Then, in 5-7 years (when the market improves) you can sell the property at a profit, and take the proceeds and put it into the next home. Have a tenant? You can refinance your mortgage, and take those proceeds into the next home. Rent your new home, if you’d like, and keep the cycle going
These are great reasons why you should buy real estate. Let our agents help with the how. Call 617 670 1111 or email us today to find out more! If you're interested in learning more about Real Estate and the buying process, check out these videos from our YouTube channel!