Is now a good time to buy a home? You may find yourself asking this question as you consider whether it is time to enter this intimidating housing market. You may believe waiting until 2024 might be the best for you. However, there are many things to consider before deciding to put off purchasing a new home for yourself and your family.
At Premier Utah Real Estate, we want homebuyers to feel confident about entering the housing market. Homebuyers should understand what today’s housing market looks like and what they can expect from the home-buying process to feel most confident.
Should You Buy A Home In This Market?
When considering taking the leap into the current housing market, you must consider whether it is the right time in your life to buy a home. This could mean looking at your responsibilities to determine whether you are ready to add more to your plate. Ultimately, deciding whether to buy a home in this market is on your shoulders. No one but you knows if it is the best time for you to buy a home. However, you should know what the market looks like before deciding.
What To Know About The Market
One of the most significant factors impacting a homebuyer’s decision to buy a home is the current mortgage rate. In the United States, the 30-year fixed mortgage rate averages 6.96%, and the 15-year fixed rate averages 6.30%, up by almost 2% from last year.
Another factor impacting a homebuyer’s decision to buy a home is the current price of homes on the market. However, this may not be a problem for Utah homebuyers as the average cost of a home in Utah is $545,200, down from $562,100 in June 2022.
While homes are selling for less than they were last year, they are still selling incredibly quickly. In March 2023, the average home was on the market for 54 days. This means there is not much wiggle room for anyone interested in purchasing a home.
Why You Should Buy Now
While you might feel intimidated by the current housing market, it is essential that you know that, with a great real estate team behind you, now is a great time to buy a home. Because of the ever-changing federal interest rates, many homebuyers who have purchased in the last year have secured their interest rate before interest went up. Buying in 2023 can lock in interest rates, ensuring you won’t have to pay more than you are prepared for.
Are You Ready To Buy?
As we already briefly mentioned, it is essential to consider whether you are at a good point in your life to purchase a home. Considering whether you are ready to buy a home can include a lot of things, including the following:
- Consider Your Credit: While you don’t have to have perfect credit to purchase a home, you should consider working on your credit score if it isn’t great before you decide to purchase a home. A conventional loan requires a 620 credit score, though it is recommended that you wait until your credit score is 740 or higher.
- Prepare A Down Payment: Many programs help homeowners purchase a home with little or no down payment. However, you should still consider building a down payment for a potential home. Having a down payment will help bring down your monthly mortgage payment and may give you a leg up over other homebuyers.
- Pay Down Debts: When purchasing a home, it is essential to ensure your debt-to-income ratio isn’t too high. If it is too high, you may find it harder to get approved for a mortgage loan when you begin to apply. By paying down your debts before you’re ready to buy, your debt will be lower when it comes time to purchase.
- Get Pre-Approved: Pre-approval for a mortgage is a great way to prepare to buy a home. By seeking pre-approval, you can better understand the home you can afford and what your payments will look like.
- Find A Real Estate Agent: Before you buy a home, you should look for a real estate agent you can trust. While you are waiting to purchase, consider looking at the reviews of local real estate agents. Reading reviews will help you find an expert you can trust to walk you through this complex process.
Buy A Home With Premier Utah Real Estate
Buying a home in this market may seem intimidating. But with the correct information and preparation, purchasing a home should be an exciting experience for your family. A reliable real estate team can help you through every step.
If you are looking to buy a home in Utah, you should work with a team of experts you can trust. Our team at Premier Utah Real Estate is confident that we can help you through the entire process, and we will find you your dream home. If you are interested in working with our team or would like to speak with an expert, contact us today.