Even with the anticipated buyer's market, people are still extremely reluctant about buying a new place to call home, thanks to the still relatively high interest rates (which, while lower than last year, are still insufficient for some buyers). Collectively preferring to wait for prices to fall further, and homes remain scarce despite steady increases in inventory (to avoid awkward bidding wars) are other reasons buyers are still backing off despite the decrease of home prices since last year

However, what do our real estate market analysts have to say about this? Is this the BEST decision they may take based on the current market? The Williams Team is here to give you four things to think about before moving forward with a decision:

1.)  Is your Credit score good enough?

When trying to get a mortgage, your credit score will play an essential part in determining the interest rate you are able to get. Your credit score is influenced by your credit history, which includes the entire volume of debt you owe and whether you make on-time payments.

Always check your credit report and score prior to borrowing money. Lenders use credit scores to figure out your mortgage eligibility and the conditions that you must meet. If you can prove that you are a "low-risk" borrower with an excellent track record of timely payments, you will be able to obtain the lowest mortgage rates that they will surely offer!

To get the ideal credit score to be pre-qualified into seeing homes, make sure to connect with a realtor like us to help you pair up with the best lender possible while getting you the best rates possible!

2.) Are you ready for unexpected expenses?

These can make or break any dream home deal so you have to make sure that you're prepared for it! 

There's no such thing as a perfect dream home- you might really click with one home that you think is the one for you and your family, but you have to be ready for any financial setbacks such as repair and closing costs not shouldered by the seller, unwanted estimates from your lenders based off of your income, and many other factors including renovations, moving, cost of new appliances and furnitures!

Also, be sure to leave yourself with plenty of extra left over. If you have additional funds that can act as a safety net in case of an emergency, lenders will feel more comfortable getting you that loan that you want from them !

Bottom line is - to make sure that you've managed to save a fair amount of money - and then some - for downpayment and other costs. If you manage to do that, then don't hesitate and get that dream home with our help now! 

3.) Are home values dropping and inventory is increasing in your area?

You ought to check around and compare the number of "for sale" and "open house" signs in your area  a few months (or years) back, as this can be among the best indicators that it is the right time to buy - or wait! 

According to NAR data, the whole nation had 2.6 month's worth of available housing in February. This was a 15.3% increase since February 2022, but it was still quite not enough to satisfy demand.

The median sale price in some metro regions has dropped significantly since late Q1 to early Q2 2022. According to a Redfin analysis published in early 2022, prices in other expensive cities such as New Orleans, Seattle, Boston, and even New York will all continue to fall until 2023 - and these prices may continue to drop all the way this year. 

However, should you choose to wait, other buyers could take advantage of the opportunity to grab such properties, causing another increase in auctions and a shortage of inventory sooner than you can anticipate!

4.) Are you moving in - for good?

Aside from learning about prices, inventory, and affordability, you ought to think about whether you want to move long-term or short-term. 

Aside from the purchase price, closing costs could vary around 3-7% percent of the property's market price. So, in order to make up for that hefty price tag, you need to be 100% certain that you won't be moving too soon after your purchase — or maybe you consider keeping the property and converting it as a rental. Build that wealth!

Furthermore, selling a home so soon after acquiring it can have substantial tax repercussions, so make sure to always move in with a real estate expert whenever you're planning on making these moves .

While committing to a new home may feel intimidating right now, the price of delaying can also hit the same! As mortgage rates are always unpredictable and have a chance to go up, your chances of selling your current home or finding another might get slimmer. 

You should consider the feel of the spot that you wanted to move to, as well as whether you have the money to make your next big purchase. 

Don't forget to consult with a knowledgeable and local realtor like The Williams Team to evaluate whether you should buy right now or wait when the market is more suitable to what you can afford.