Interest Rates Got You Worried? Here’s Why You Shouldn’t Wait!
Here’s why waiting to buy your dream home isn’t the best strategy.
Many people are concerned about interest rates and timing when it comes to buying a home. They tend to wait and see, hoping for interest rates to come down before making a purchase. However, this approach may not be the best strategy. Today I’ll share why this is the case.
Warren Buffett's philosophy of buying when others are selling and vice versa can be applied to real estate. If everyone is waiting for interest rates to drop before buying, it will lead to a surge in demand once rates do decrease. Consequently, prices are likely to rise, making it less favorable for buyers.
The reality is that the best time to buy real estate was yesterday. Those who bought properties in the past years have enjoyed the benefits of appreciation. While interest rates are currently a bit higher than historical averages, experts predict they will likely come down to around 5% or 6% in the next 12 months. So, the present might still be an excellent time to buy. There are strategies like adjustable-rate mortgages that offer better rates for the initial years and can be refinanced when interest rates go down.
"We can confidently expect positive appreciation, even if not at the levels seen in the last couple of years."
Waiting too long to buy may result in competing with others in a market where prices have already skyrocketed. It's better to purchase a home now, take advantage of potential appreciation, and refinance later when interest rates become more favorable.
As for appreciation, this year may be fairly flat, but Northern Colorado has above-average appreciation and desirability. We can confidently expect positive appreciation, even if not at the levels seen in the last couple of years.
If you're looking to buy a home, I encourage you to take advantage of our FREE Northern Colorado 'Perfect Home Finder' Service.
If you're interested in discussing this further, we're here to help. Don't let interest rates deter you from finding the home you love, as there are financing strategies available to adapt to changing market conditions. Call or email me anytime; I would love to discuss your options and get you started on your real estate journey.