Are you dreaming of owning a home? Buying a home in an ascending market where demand far outpaces supply is anxiety provoking! My best advice is to take proactive steps to meet your goal and let go of what you can’t control.
When I was buying my first house at 25, my broker called me and said “You HAVE to lock now, interest rates just fell from 7% to 6.75%. Guess what? Mortgage interest rates remain at historic lows, even if they are starting to increase gradually. In short, timing the market is nearly impossible in the short run, and in the long-run property values nearly always appreciate faster than the stock market. Property also acts as a hedge against inflation, so is a great place to park your money if you expect other prices (food, energy, commodities) to continue to increase.
Here are a few tips to keep things moving forward without allowing your anxiety to consume you:
- It is never a good idea to try to time the market. I do not advise waiting for rates to go down further or for prices to drop – it’s more likely the inverse will happen.
- Apple stock was $12 a share in 2011, now it’s $160 a share, and that doesn’t account for share splits which would make it even more valuable. People who didn’t buy because they thought the stock was at peak value or would decrease in value missed out on a great investment opportunity.
- Get a local lender recommendation from your agent and get pre-approved. If possible, request to be fully underwritten which constitutes a robust file review and can uncover potential issues in the escrow process.
- Once you have your underwritten pre-approval, speak with your agent to understand what listing price to target to stay on budget. Most homes in the Inner East Bay sell between 30-50% above the list price.
- As always, make sure you are connected with an experienced, local agent who can deftly advise you on your goals.
Begin building equity in a home now! I can help you avoid timing the market to navigate this highly competitive market. I get my buyers into contract on their first offer more than 70% of the time. Reach out for a personal consultation to learn more.