Is 2013 the Right Time to Buy a House?

Hi everyone. Welcome back to our video blog where we are bringing you relevant information to make informed decisions in the marketplace.

I’ve been getting asked a lot lately if now is the time to buy a home. First, let me start off by saying that question is a personal decision. Do you have a steady job that will cover all your living expenses? Do you have 3-6 months of cash reserves in the bank if I were to lose my job and cover housing payments, car payments, student loans, etc.

If the answer to that is yes, then, let’s move on to the next deciding factors when determining whether to buy a home now.

One of the other common themes you have been hearing about lately are interest rates. We are experiencing incredibly low rates. If you received a $300,000 loan at 30 year fixed rate of 3.5%, over the entire life of the loan, you would pay $484,968.

Now, if rates increase to just 4.25% that same loan will end up costing you $531,292. That’s a $46,327 price difference for that same $300,000 home.

Another common question I keep hearing is ‘are home prices the lowest now and are they starting to trend upwards?’

I can’t speak nationally, but here in Connecticut prices are starting to steadily increase. It is turning into a sellers’ market. Right now, with the lowest interest rates and all of the inventory, you are getting a lot of bang for your buck.

So, to answer your question about whether 2013 is the year to buy, in my professional now is the best time. You are getting the biggest bang for you buck and the lowest interest rate.

If you have any questions please give me a call or shoot me a quick email! Thanks for watching!