Should You Hold Off From Buying The Home Of Your Dreams?
We hear it all the time: is now the best time for me to buy my dream home? Buying your first home is an exciting milestone, so it’s wise to do your homework and ask the right questions.
When people wonder if now is the “right time” what they are really asking is “can I time the real estate market to get the best deal?” The short answer is no. Unless you are a psychic, there is no proven way to know where the real estate market is headed at any given time. The market is based on the supply and demand of real estate so there are certain patterns that you can watch.
Predicting the Real Estate Market
Are you familiar with the term “the real estate cycle?” Just like the four seasons, there are four phases to the cyclical pattern real estate tends to follow: recovery, expansion, hyper supply and recession.
- Marked by high unemployment, a greater number of foreclosures and apprehension about buying, the recovery phase is when the market is climbing back after its last downturn.
- The expansion phase is when employment looking up and confidence in real estate growing. Home prices rise as more people decide to make the move from renting to owning a home. New homes are built. Home prices tend to rise as more people become optimistic about the future of the housing market.
- The hyper supply phase is when all new construction outpaces the demand from the expansion phase.
- Because prices drop, the recession phase can be an exciting time for people looking to invest in a new home.
Once the real estate market bottoms out during the recession phase, it begins to rise again and the recovery phase starts anew.
The Best Time to Buy Your Dream Home
Understanding the real estate cycles is helpful for home buyers. Trying to time the cycles to “get the best deal” is an unrealistic approach, as no one knows exactly when the market will shift from one phase to the next.
There are lots of warning signs that may indicate that it’s not the time for you to buy a home. How do you determine then if it is the right time to make a move? Easy! Are you ready and financially positioned to buy? If the answer yes, then it’s time to move forward to getting the best deal, right now, on that dream home.
The truth is, the “right time” is less about when and more about you, the buyer. At Steele San Diego Homes, we encourage first-time buyers to buy a home when they feel the time is right and discourage waiting for any market turns. We’re firm believers in buying a home as soon as you are ready. It can be a terrific investment both financially and emotionally.
Whether you’re looking to buy in Clairemont, Pacific Beach, Encanto or one of San Diego’s other great neighborhoods, with the right strategy and a great realtor you can buy the home of your dreams today.
The Bottom Line
The housing market is constantly going through highs and lows. Instead of trying to time the market, base your decision on when to buy by assessing where you are today. While the latest hot market might quickly cool or not, you shouldn’t pass up the home of your dreams because you think it’ll be a better deal tomorrow.