So you’re thinking about buying a house – you more than likely already have questions about whether or not it’s a “good market” or what exactly a good market even is. Continue reading to let us at Flow Realty inform you of the current market conditions and help you better understand what it may be like to purchase your home right now.
Current Real Estate Market Conditions: March 2023
In early 2020, as the COVID-19 pandemic spread throughout the country, interest rates plummeted to below 3%. As a result, eager homebuyers flooded the market looking for a low rate and homes started to sell at record-breaking rates – many buyers even waived contingencies and offered well above the asking price.
Today, we are still feeling the effects of this skyrocketing market as home prices are still high. In many markets, prices have started to go down mostly due to the fact that inventory remains low. In contrast, the low rates of 2020 are long forgotten; mortgage rates have consistently increased over the past year and are nearly double what they were prior to the pandemic. Because of this, many buyers are skeptical or simply cannot afford to purchase a home in the current market.
As there is no way of knowing for sure whether or not mortgage rates will come down or continue to climb up, and the prices of homes are only now starting to show signs of slowly trickling down in most markets, there is no easy answer to the question: is now a good time to buy a house?
Figuring Out If Buying A Home Is Right For You
Truthfully, it is unlikely that there will ever be a perfect time to buy a house. There will always be important things to consider before making a commitment as large as purchasing a home. Rather than rely solely on current market conditions to determine whether or not it is a good time to buy, here are some things to consider for yourself:
Budget – figure out how much you (and those you may live with) can afford to spend in order to own a home
Savings – evaluate your savings and determine how much time (if any) you need until you can comfortably afford to buy
Responsibility – it may seem silly to ask yourself, but you should be absolutely sure that you understand just how much work will go into owning a home
Closing Thoughts
Ultimately, the only person who can decide if purchasing a home is right or wrong is yourself. Your best bet is to evaluate your current situation – both financial and personal – and identify whether or not you feel like buying is right for you. At Flow Realty, we offer our clients endless support and guidance when it comes to the buying process in the Somerville/Cambridge region of the Greater Boston area. If you would like to learn more about whether buying a home is right for you, please feel free to contact us today.
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