Should you buy a house now, or wait? Interest rates drop slightly
Buy now here in Tulare County or wait until 2024? That is a question prospective homeowners have been struggling to answer in today’s housing marketplace. Home prices skyrocketed throughout the pandemic, and the Federal Reserve’s work to tame inflation by raising mortgage rates has sent them soaring also.
Here in Visalia, Tulare, Porterville, Hanford and Fresno that combination of financial factors is leading many would-be buyers to pick the “wait” side of the equation. In fact, according to the Fannie Mae Home Purchase Sentiment Index released earlier this month, more than 80% of consumers believe it is a bad time to buy a house.
However, after being at a constant disadvantage for the past few years, things have started to look better for buyers in the San Joaquin Valley. Days-on-market figures are way up, giving buyers more time to make a decision. Popular Valley cities and West Coast towns that have seen increased home prices are starting to see reduced asking prices in order to sell their properties.
Some real estate companies are predicting that more than 3 U.S. metro areas will actually favor buyers by the end of the year, including plenty of desirable places here in the Visalia, Tulare, Porterville, Hanford and Fresno areas. Buyers should be working with Realtors who know their marketplace, especially members of the Tulare County Association of Realtors who can represent local developers who are selling new home subdivisions in those cities.
A good example is the new neighborhood on Goshen between Lovers Lane and Ben Maddox entitled “Maplewood”.” “Maplewood is designed for first-time home buyers in Visalia and is similar to the proposed J.R. Horton project north of River Way Road east of Mooney and south of the St. Johns River. That proposed annexation into the City of Visalia has just been approved by the City Council and calls for the addition of more than 500 new homes into the City.
So, is it time to buy a home? Or is it better to wait on the sidelines, in the hopes that either prices or rates see a significant drop soon? And what if there is a recession? Here are some key considerations to help determine the way forward.
Mortgage rates are high, higher than they have been in more than 22-years, as of early September, in fact. And home prices are high too. However, no matter which way the real estate market is leaning, though, buying now means you can start building equity immediately. It also means avoiding the potential for additional mortgage rate increases later. Rising rates can force your out of the marketplace.
If you have excellent credit, have saved enough for a down payment and are planning to stay in your new home for some time, we recommend you buy now and do not wait.
It’s time to call a Realtor, get prequalified by a local lender to find out exactly how much home you can afford and start looking for a new home. The Southern San Joaquin Valley is a great place to raise a family. And it is still one of the most affordable places in California to buy the home of your dreams.
Mike Allen is the President of the Tulare County Association of Realtors, President/Broker Owner of Century 21 Jordan-Link & Company, a full-service real estate firm celebrating their 47th year in business, with offices in Visalia, Tulare, Porterville, Hanford, Delano, Bakersfield, and Fresno. Mike can be reached at 733-9696 or Mike@JordanLink.com
This article originally appeared on Visalia Times-Delta: Should you buy a house now, or wait? Interest rates drop slightly
