Is now the right time to buy a home, or should you wait?
With fluctuating interest rates, many would-be buyers find themselves caught in a tough decision. Lock in now and refinance later or wait for rates to drop and potentially face a bidding war and even higher home prices if demand surges. KPRC 2’s Andy Cerota dives into the housing market in Houston right now.
From high mortgage rates that have yet to stabilize to limited inventory, now is not an easy time for would-be buyers across the Houston area like Raul Salas.
“I’m just trying to be open-minded about different places in the inner city, to get an idea of where I’d like to live, and what kind of lifestyle I’d like to have. But if it’s the right place and the right price, I’d probably pull the trigger,” Salas said.
Salas is one of many potential buyers across the Houston area weighing his options.
“I just think if it’s the right place and the right price, I probably would pull the trigger regardless,” Salas said. “I think more importantly is just getting in a place you like and there is some price appreciation.”
Local real estate agent, Fronnie Flowers, said the Houston area’s current inventory is sparse, making it even tougher for buyers to find a home that meets their needs.
“Right now, it’s very difficult for clients to make a decision. If you love it, you buy it because there are some homes getting multiple offers,” Flowers said.
With mortgage rates still stubbornly high and despite the feds rate cuts, mortgage lender Allison Celeste said it’s important to focus on timing that works for each buyer’s financial picture. ”The best time to buy is when you’re ready. You don’t really have a true gauge on where you are until you consult with a mortgage lender. Starting now is always going to be your greatest advantage,” Celeste said.
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Even with mortgage rates keeping some buyers on the sidelines, Celeste said we’re facing what she calls the largest pent-up buyer demand in history, creating an ongoing on imbalance in the market. She warns it could shift again, heating up even more.
“I think that Covid will pale in comparison to what’s coming. I don’t say that to scare people. They’re just waiting on those better interest rates to hit before they make that aggressive move,” Celeste said.
While there’s no one-size-fits-all all answer, for buyers like Salas, it may come down to a matter of following his instincts. “The only advice I give is to go with your gut and just move on with your life. You can’t suspend your life forever,” Salas said.
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