While waiting to buy a home can offer you more time to save and prepare, there’s something to be said for striking while the iron is hot if you locate your dream home at a great price. Let’s look at the big picture of the real estate sector to see how much homebuyers in Jacksonville would pay if they wait to buy:
One of the perks biggest buyers have been able to take advantage of over the last couple of years is the historically low home mortgage interest rates.
This was an intentional result of the Federal Reserve’s efforts to keep interest rates as low as possible in order to keep markets stable and working smoothly. As a result, buyers have had a fantastic opportunity to lock in low interest rates with their lenders for new loans or refinances.
However, the Federal Reserve has been eyeing the strong possibility of increasing these interest rates to curtail inflation, and that means waiting to buy could cost you a lot in interest.
Throughout the COVID-19 pandemic, the number of homes for sale has fluctuated wildly in local markets compared to their usual annual moving average due to a number of factors.
The ping-ponging comfortability with going out in public and visiting unexpected places, as well as the significant increase in homeowners refinancing to take advantage of low-interest rates without having to search and move to a new home, are the two main causes for the low inventory levels. Consumer comfort and trust in dealing with the virus has reached a high point in the global epidemic, which means more properties are being listed for sale.
The temporary increased inventory has helped to put a check on the near out-of-control bidding wars that have characterized the past year or so, but it’s unlikely to last.
Increased Buyer Competition
Buyers have come out of the woodwork and are searching for new homes with limited inventory that is likely to decrease over time.
In many cases, prospective purchasers have been putting money aside that they would have spent on other things in the hopes of the market opening up and allowing them to swoop in on their dream property. Increased rents are being paired with increased savings as landlords seek to recoup some of their losses from the previous two years while also keeping up with the booming real estate markets. Over the next year or two, this will result in more renters looking to become purchasers, increasing competition across the board.
More buyers and more competition mean an increased likelihood for bidding wars that carry the potential to rapidly get out of hand, so waiting to buy may cost you more in the long run.
Lastly, all of the previous points are going to become exacerbated as the weather warms up heading into spring.
Spring is generally when local markets heat up in tandem with the weather, and you can expect momentarily higher inventory, a tremendous flood of buyers, increased competition, and the greater chance for higher interest rates, all of which will result in a more expensive homebuying experience. Housing shortages are not new in the United States, but their presence will only become more apparent as spring arrives and buyers push home prices soaring once more.
Getting out ahead of the competition now and moving when it may be inconvenient could save you a bundle down the road.
Help to Avoid Waiting to Buy in Jacksonville
If you’re concerned about waiting to buy a home in Jacksonville and want to get a jump on things, contact our team today at (904) 867-8673!