When Is the Right Time to Buy a House?
Potential home buyers are the best judges of when it's the right time to buy a house. Successful home purchases involve more than just getting a house at a low price. For instance, consider whether you can fulfill all of your other debt obligations if you take on a mortgage and whether you have the time to maintain a house.
Other People Are Reading
-
Home Prices
-
Some people let economic factors dictate when it's the right time to buy a house. An economic downturn can cause property values to drop as foreclosure rates increase. However, that's also a time when home buyers can get houses at bargain prices. People who have been unable to afford a home may be able to buy one during an economic slump. Bargain hunters should consider that property values can continue to drop if they buy a home during an economic downturn. As a result, new home buyers could end up owing more on their mortgages than their homes are worth.
Interest Rates
-
Economic slumps may cause interest rates on home loans to drop as well. People who can qualify for a low-interest mortgage may want to buy a house in such situations. Homeowners pay thousands of dollars in interest charges over the life of a home loan, especially if they sign onto a traditional 30-year mortgage. Therefore, any time a person can qualify for a low-interest home loan can be the right time to buy a home.
-
Buying Season
-
A Bankrate article entitled "The Best Time to Buy...Anything" says the buying and selling season for real estate begins in March and lasts through the summer months. Home buyers usually have more houses to choose from if they shop for a new house during this time. However, it's also a time when there is more competition among home buyers. They could end up in a bidding war with each other as they seek to buy the same properties, which can quickly drive up the price of a house.
Considerations
-
Any time can be a good time to buy a house as long as you can comfortably afford the mortgage payments and you don't see your house only as an investment. People who buy homes they can afford and view them as a place to live, raise their families and improve the quality of their lives will be happy with their houses even if property values drop. You also can determine whether it's a good time to buy a home based on whether you're ready to take on the responsibilities of home ownership. Consider whether you're willing and able to handle routine home maintenance, repairs, yard work and other responsibilities that go along with owning a house.
-
References
- Photo Credit Sold Home For Sale Sign on Burst image by Andy Dean from Fotolia.com
