Now is the Time to Consider Buying, Before Interest Rates IncreaseLIV Sotheby's
While many potential home buyers view the winter months as not an ideal time to make a purchase, the forthcoming trends prove that you may want to reconsider. Interest rates on home mortgage directly impact your monthly payment, so making a home purchase when interest rates are low allows for extra spending (or saving) elsewhere.
While not currently “low”, interest rates are 4.85 percent and experts believe these rates could increase to 5.85 percent a year from now (according to Inman.com). These rate hikes dramatically affect purchasing power or disposable income.
Typically, the reason for mortgage rates to increase is a strong economy. A strong economy boosts consumer confidence, which in turn also increases consumer spending and the willingness to borrow. Consumer confidence is comprised 40% of opinions on current conditions and 60% on expectations of future conditions. Impressively, as reported by LIV Sotheby’s International Realty, consumer confidence achieved an 18-year high in September 2018, at 137.9 (a 361.2% increase from January 2009).
The good news for buyers right now, home sales are slightly slowing down – allowing for more flexibility when you’re trying to land your dream home. With an interest rate increase around the corner and prices at a fair level, now is an ideal time for buyers.
If you’re interested in selling your home, this doesn’t mean that you need to wait either. Instead, your focus should be on making sure your home is “show ready”, even with the weather changing. Buyers may have more flexibility right now with pricing, but not necessarily with inventory. Make sure your home is welcoming and the right buyer will be comfortable making the investment.
Tips for Making Your Home “Show Ready”:
- Shovel snow / clean-up walkways
- Tidy up – vacuum, sweep, etc.
- Wipe off all counters, sinks and appliances
- Put away all dishes
- Make all beds
- Neatly hang and fold clothes in all closets
- Regarding holiday décor – while showing your home, the best idea is to be a minimalist here (being overboard can steer some potential clients away)