Sure, interest rates are relatively low, prices are lower in many markets than they have been in a while and housing is certainly more affordable.
However, here’s the thing…who is selling in this market, when prices are down (in many cases, far below what a Seller paid) so much?
Sellers who have to sell because of changes in jobs, family circumstances or other opportunities. There are lot of people, who would love to sell — but simply cannot because they don’t have enough equity in their home. While there are always people who can sell with no issues, there are plenty of homeowners who are simply going to “wait the market out” until prices start to appreciate.
After all, if it is the PERFECT time for Buyers to buy, doesn’t that mean it’s not necessarily the best time for Sellers to sell – unless they have plans that make sense for them to do so right now?
And that means inventory – at least in ALEXANDRIA VA – isn’t all that great, which makes it tough — especially on first time home buyers. Oh, sure, there is always going to be something to look at, houses to buy, but the selection isn’t what it used to be when the market was hot.
So, what’s an excited first time home buyer to do? Well, here is some food for thought:
- Be realistic about your expectations for your first home. Does your desire for the perfect first home outweigh the possible financial and tax advantages of home ownership?
- Assess your skills and budget to see what updates and renovations may be possible if you cannot find the house of your dreams.
- Ask yourself if it makes sense to continue paying your landlord’s mortgage because you cannot find a home in your price range with granite counter tops and stainless steel appliances?
- Take a look at your financial goals for the few years and see if home ownership would not be a benefit – even without maple cabinets and hardwood floors.
While you may not be able to get exactly what you want in this market, it doesn’t mean buying a home doesn’t make good financial sense. After all, you can always add the cosmetic touches as time goes along. And, in a few years, after the market has recovered and prices have started to rise again, you will be able to sell that first home and start looking for your dream home – made possible by the equity and tax advantages you’ve gained from home ownership.