The question of whether or not now is a great time to buy a home is actually less straightforward than you might think.
Is now the right time to buy a home?
Well, we know that rents are rising nationally. Meanwhile residents of San Diego are concerned because home values are so high—we’ve been in a seller’s market for nearly the past seven years.
To answer the previous question, we have to look at it from a financial perspective rather than what’s going on in the market. You will want to speak to a lender first to see how you can convert your rent into a mortgage payment. They will help you judge whether it is a financially sound move for you to purchase. By speaking with them, you can learn about what monthly payment you qualify for, and, more importantly, what payment you are comfortable with.
Once that is established, we can then match that with the available inventory in the market, to see if there is a home that matches what you’re looking to accomplish.
The length of time that you’ve owned the property is going to impact the feasibility of purchasing a home.
Beyond that, we want to make sure that our clients understand the added expenses of property taxes, maintenance, and utility fees that they might not have to pay if they rent.
Additionally, you need to consider how long you’re going to live in the home you buy. If you bought your home in 2004 and have held onto it until now, you actually made a great investment. The length of time you’ve owned the property is going to impact the feasibility of purchasing a home. Some clients are telling me they want to buy now and then sell in a year to move up. If this is something you are considering, you should know that you won’t make a lot of money from that decision. It’s hard to predict the market.
Ultimately, the question of whether or not now is an appropriate time to buy is more related your monthly profits and losses—what works well for you and your family.
If you have any other questions about whether now is a great time to buy, please feel free to reach out to us. We’d be glad to advise you based on your individual situation.