Should You Purchase Now?
We are entering the typical slowest market of the season. The mortgage industry has often dictated people take their vacations in December. People’s attention moves to the Holiday Season. Homes are being decorated, family is coming, and sellers often decide to not go through the disruption of having their home on the market.
If the question, should you purchase now, catches your attention because it applies to you, I have some things for you to think about.
photo: taken from Talus, an Issaquah Development
First some questions to you. Why now? Have you been waiting for a reason? Are you moving in from out of state? Is your lease coming to an end? Are you moving up?
Now I offer some general answers to some of you:
Interest rates are sliding down. Normal mortgage markets would have seen rates come thundering down. Where par on a 30 year fixed rate just slid to be under 6% times past would have seen it down to 5%. Also typical is the fact that this is the season rates usually start to rise.
Lower rates have a countering effect to higher prices. If you have been waiting for prices to drop, some local prices have – you may have the double benefit of rates dropping at this time.
I would suggest you start tracking rates and homes at the same time. Have them converted to monthly payments to compare. Do this if you are serious.
The first of the year will bring some interesting and important information. We will find out how many people have waiting to buy and sell. We have already measured the situation with some of our clients and suggested they wait until then. The problem with waiting is the unknown. If rates continue to fall and the right home comes up at the right price our buyers may want to change their mind and strike.
Will there be more buyers in January than now? I think so.
Will the rates be lower in January? I don’t think so.
Will there be more homes on the market in January? I am sure of it.
Will homes be priced lower in January? In Issaquah I doubt much if any lower.
