There are three good reasons why it is the season to buy now, in my opinion. If you are on the fence about buying or have been waiting for the right time, this may be it, from my perspective.
Reason #1: There has been a fundamental shift in the Texas market. I do not have the citations for this and do not know what the others are saying as I have been busy selling real estate. I am just writing what I am seeing in the real estate trenches. I can tell you that people who have been looking for homes for a long time are going into contract now. Buyers are not having to pay more than the home is worth to get it. And, buyers are not looking at 100 homes for a year before finding one. Now, that is a generalization, and there are still spots and price points where homes do not stay on the market more than a few hours, but for the most part, it is taking longer to sell homes, and particularly those from about $400,000 and up. The back-to-school rush is over, so the market always cools down this time of year and will continue to slow as we approach the holidays.
Reason #2: The Feds and people who make those decisions are talking about raising interest rates. There have been arguments to why it is a good idea overall for our economy. They are almost giving money away at current interest rates. If you are in a position to get in on this, I recommend it. Even a small interest rate hike has significant impact on the price of a home you can purchase, and just think about all that extra interest over the next 30 years. My own son who is not quite ready to buy is looking before the beginning of 2017, when I expect to see interest hikes. (Please read other opinions and news articles on this. There are always different sides to the story). While he will probably be making a little more money next year and more in a position to take on a mortgage, by that time I expect to see higher interest rates. While he will likely be in a higher price range in a year, he could probably buy about the same home he can buy now at less money at these historically low interest rates. Add that onto the value increase rates we are seeing, and we have ourselves a good-time-to-buy. I recommend you look at yours and your children’s position now as well.
Reason #3: If you close before the end of the year, you get your homestead exemption next year, which can be a nice tax savings at the end of the year. Further, there are tax deductions typically from closing, so it can help ease the burden for two years if you close before December 31.
Please note that I am not an economist, accountant or a tax adviser. I am a real estate sales professional and mother, and these are just my opinions and observations. Always consult the appropriate experts before making any financial decisions and/or investments. I am not saying to run out and do anything without great thought, but if you are a buyer deciding on good timing, then look at the variables closely. I am your friend and expert in real estate…Call me with any of your needs. I work hard for every client, and I treat each client like family. My clients usually become good friends of mine, if they were not already.