Today I'd like to point out some misconceptions that you may have as a homebuyer.
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 traditionally higher than during the winter. According to both Dane County data and data from the National Association of Realtors, you’re likely to pay less for a home during the winter versus any other time of the year.
Less competition. There are fewer buyers in the market at this time of the year that you'll have to compete against. When sellers have fewer buyers looking at their home, you’re more likely to get better terms on that home.
Interest rates went up and will continue to rise. Rates went up after the election which affects affordability. A buyer’s mortgage payment increases by 10% for every 1% that interest rates go up. Imagine how this affects how much home someone can afford to buy! When rates go up, buyer 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 rise in the spring.
When rates go up 1%, mortgage payments go up 10%.
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 safe, healthy, and happy holidays and I look forward to helping you in the New Year!