Real Estate markets are hot all over the country. In many places there are just weeks of inventory rather than the usual months. This often means two things; fewer homes to choose from and at higher prices. However, the good news is that if you are also selling a home particularly if moving from a higher cost area to a lower cost area, you will get top dollar for your home. Yes, you will pay top dollar to buy another home in many cases, but if you have the equity to do it from the sale of your existing home, it is probably ok.
Some might think, it could be smart to sell a home now and wait to buy another one until it is a buyer's market. The problem with that scenario is mortgage interest rates. There is no way interest rates can remain at these historically low rates forever. The ability to lock in a 30 year mortgage at a 3% interest rate is incredible. Historically, rates have averaged about 8%. So while higher interest rates would moderate the prices of homes, the payments on a lower priced home when rates go back up could actually be more than the payments on a higher priced home with a 3% mortgage. So waiting might not be a good strategy.
The real issue today is finding a home that works for your family when there is so little inventory. Brand new homes are likely to sell for 20% more than an older home with the same square footage. And, in many cases it is taking months to actually close on a new home because construction times are usually about 6 - 10 months, since most likely there are few desirable homes ready for immediate move in.
Whatever the market, a buyer should always consider location, location, location. Always remember there are no bargains in real estate. If you buy crap, you will own crap that will be hard to sell when the day comes that you want to move. So, take your time. At Paragon Home Resources, we work with customers in all phases of life to assist with life decisions. We can help you sell your home for the best price possible and buy another for the best price. We have worked in good markets and bad markets for years. We know how to maximize opportunities to make the right decisions that will stand the test of time.
