Now that we are starting to see a semblance of normalcy starting to creep back into our daily lives, with restaurants and shops opening and finally being able to see our family and friends again (with extra precautions of course). A number of news and media outlets have reported predictions of a declining real estate market to come, as home prices are set to possibly decrease. The question I have been asked by many of my clients lately is, “should I wait to buy if the prices are going down?”
The challenge with answering this question is, as always, it varies from person to person. However, for the most part, the short answer is likely NO. What we saw for the last few months as Covid-19 became a state of emergency and people were told to stay home, was that banks had temporarily reduced mortgage rates to historical lows. During that time, clients were getting pre-approved for sub 2% rates and, even now, rates are still lower than they were in the beginning of the year. From what I have been hearing from mortgage specialists, it is a general consensus that mortgage rates are almost guaranteed to climb significantly in the next little while. If this is the case, waiting for lower prices could mean still paying more per month (due to interest) even though on paper it looks like you are saving money. This may be the case for almost all people unless they pay all cash and do not require a mortgage.
My best advice is to take advantage of your low mortgage pre-approval as soon as possible, before the locked in rate expires. As the saying goes, “the best time to buy was yesterday”. Don’t wait till tomorrow to kick yourself for not buying before. Contact us today to get a free mortgage pre-appproval with absolutely no obligations!