You may have been looking at one of the many homes for sale in Lakeland wondering when is a good time to pull the trigger on that piece of property. With the economy in a state of flux and so much uncertainty still surrounding the pandemic and its effects, many prospective home buyers may be feeling a bit skittish about jumping into the market. Should you sign on the dotted line in 2022 or put this process off until 2023 or 2024? Here are a few things to consider.
Looking at Interest Rates: If you have been paying attention to the moves of the Federal Reserve, you know that interest rates are climbing upward at a rapid rate. After enjoying 30-year fixed mortgage rates around 3% for much of 2021, the current rates are now nearing 6%. Rates are predicted to inch up a bit more for the balance of 2022 as the Fed continues to make moves to combat rising inflation. However, these rates will increase at a slower speed than what home buyers saw over the last few months.
The Fed is scheduled to meet again at the end of July. Experts are predicting that there is another rate increase on the table, however, the increase may be smaller than what the agency landed on during earlier meetings.
Looking at Home Prices: Another piece of the puzzle to consider when deciding whether to buy now or wait it out is the current home prices. There is no doubt that home prices are approaching record levels in many communities. While this is good news for sellers, it can spell trouble for buyers. This is particularly true for first-time home buyers who have no equity from an existing property to lean on. According to data from May, the median price for existing homes across the U.S. was up 14.8% from the same time in 2021.
Looking at Inventory: Good news is on the horizon for buyers as it relates to home inventory. According to new June 2022 data from Realtor.com, there are more homes on the active for sale list for the second straight month. The greater amount of inventory comes as more sellers make the decision to list their homes while demand simultaneously begins to slow. While it may have been nearly impossible a few months ago to find a home that checks all of your boxes, a higher amount of inventory makes it more likely that you will find the property of your dreams.
The bottom line is that the best time to buy a house is largely dependent on your personal needs and financial situation. What works well for one buyer may not yield the same desirable results for another buyer. Be sure to consider all of the factors when deciding how to time the decision right.