The housing market can be fickle, and many potential buyers might avoid it during an election year. An overwhelming trend is to avoid buying until the future political landscape has settled. Unfortunately, future trend predictions are leaning toward higher mortgage interest rates and increased buyer competition for houses on the market. The fall of 2016 might be shaping up to be the best time to buy a home, and I would recommend looking into homes now if you can.
Many Potential Buyers Aren’t Focused
If others are focused on the election and the political climate, those who are really invested in the real estate market can take advantage and negotiate with sellers who are receiving fewer offers than anticipated. Politics and commentary in the news might convince others that the uncertain political climate is enough reason to shy away from large purchases. Election pessimism might keep others from buying homes and other large purchases, but I would point out that this is actually a good time for spending and borrowing, due to the overall strong economy and low interest rates.
Buying in the Fall Is Strategic
I tend to see the fall as a great time to look into buying a home. There is less competition because families looking to move in the spring and summer are settled or off the market until next year. Other homes that may not have sold in the summer will go for lower prices, since sellers will be more serious about making the sale. Buyers can take advantage of the low inventory and zero in on their perfect home without being overwhelmed by too many choices on the market. If other potential buyers stay on the fence, this can be a great opportunity for serious buyers to lock in low rates and find their perfect home.
Low Interest Rates Might Not Last
While current trends have shown low mortgage interest rates through 2016, they might not stay that way for much longer. Housing prices and interest rates may see a spike after the November election. Elections can make us think about a shift in the economy, and a change in market cycles can spill over into rising mortgage rates. Wage growth can bring with it inflation, causing higher spending and a raising the overall market on home values. If buyers start to feel more comfortable taking steep loans, rates will go up over time.
If you have been thinking about buying a new home, there are plenty of reasons why now might be the time to act. A combination of the current economy, future uncertainties, and locking in low rates while you can all can make this a smart time to buy. I know that the home buying process is a big step, but it can move swiftly once initiated. If you are in a place to buy, it’s a good time to give some serious thought about putting in offers this fall. Call us today to discuss the best strategy for you. (949) 375-9981