With rising rents is it a good time to buy a home?

The best time to buy a home depends on various factors such as your financial situation, the local housing market, and your long-term plans. Generally, it’s a good idea to buy when you have a stable income, a good credit score, and enough savings for a down payment and closing costs. Additionally, buying during a buyer’s market when there are more homes for sale than buyers can give you an advantage in negotiations.

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When it comes to finding opportunities in real estate, there are 2 major things that we follow. These are the NAHB/Wells Fargo Index and the Fannie Mae Home Purchase Sentiment Index (HPSI). By watching these, we can see who’s willing to invest in the market, and how buyers or sellers are feeling. Here’s what you need to know; the NAHB/Wells Fargo index is at a 6-month high, and the Purchase Sentiment Index is up for the 3^rd month in a row despite only 17% of consumers thinking it’s a good time to buy a home!

So how does this create an opportunity for you? First off, month over month, 11% more people think it’s a good time to sell with 2% more people thinking home values will go up in the next year. FYI, in Portland, we are still seeing homes sell within 1% of their asking price and many times with multiple offers. 

For buyers, however, we agree with the 17% that think it’s an excellent time to buy, and this is a unique opportunity! If you can afford a home with the current interest rates, you’ll have far less competition, more homes to look at, and a high likelihood that your housing expense will go down in the next 12-18 months when rates likely drop.  

So, if you are a first-time homebuyer, a vet, or just someone that needs a really low-down payment, think 5% down or even less, now is your time to buy! There will be fewer cash buyers to compete with, more homes to choose from, and more sellers willing to work with your loan program. If you, or someone you know, is in this situation we should talk today.

Best,

Jamohl & Lacee DeWald

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