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Is it the Right Time to Buy?

Wondering if it’s the right time to buy a home with interest rates nearing 8%? Scott Himelstein dives into the real estate market in Southern California and what you should consider if you are in the market to buy a home!

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Does it even make sense with interest rates approaching 8% to buy a home right now, stay tuned.

Scott Himelstein with the Scott Himelstein group. What’s the number one question that I’m getting asked right now, whether I’m at the grocery store, at the mall, the post office, you name it. Well, when people find out that I’m in real estate, they all want to know the same thing. What’s happening in our real estate market here in Southern California, especially with interest rates on the rise.

Now, is it the right time to buy or should I wait? That’s the question that I usually get asked the most. So these questions are on the minds of both buyers and sellers because it affects both.

Well, for starters, here’s the unvarnished truth. None of us have crystal balls. If we did, I would be in Las Vegas in a whole other line of work completely. So we can’t predict the future with absolute certainty.

However, we do have some really solid insights into what’s happening right now. So it’s interest rates have climbed significantly compared to this time last year. We’ve shifted these sub three rates that we had a while ago to approaching now over 7.5%.

And this change impacts the numbers no matter where you stand in the market. So one common mistake people make is thinking of their homes in terms of its price tag, whether it’s a million, 1.2, 800,000. Instead, I always recommend, that they should consider the monthly payment and whether or not it’s manageable with the current interest rates.

A lot of buyers try to time the market and usually that doesn’t work because the truth is that rates can go in three different directions, up, down or stay the same. And what really matters is the fundamental reason behind your decision to buy a home.Are you outgrowing your current space, downsizing, experiencing life changes like maybe a marriage, divorce, a job relocation, or a desire to be closer to family or work? These are all very valid motivations to buy.

If rates go up, you’ll be relieved that you locked your mortgage at a manageable rate when the market was competitive.

Now, if rates drop, that’s not something we can predict with certainty right now, but when it does happen, you could potentially refinance down the road.

And if rates remain stable, it’s akin to the current scenario where not much is likely to disrupt the status quo. So the key is to really collaborate with the financial expert or a real estate advisor to understand your budget and your goals and to divide the strategy tailored to you. It’s not about a straightforward buy now or wait, it’s about finding the right path that aligns with your unique circumstances.

Any questions, give me a call. My name’s Scott Himelstein with the Scott Himelstein Group in Los Angeles and we look forward to seeing you next time on our vlog.

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