Buying real estate is a thrilling opportunity. From equity and return on investment to building wealth and having more control, the benefits of owning a home are truly multitudinous. But with the market in flux and interest rates rising, is this really the best time to buy? Spoiler alert: yes. Here are the top reasons why now is an excellent time for new buyers to enter the real estate market.
Of course, those 2008 lows came off the heels of a major recession, proving again that numbers don’t necessarily mean everything. This year, in an effort to quell inflation and avoid a repeat of recessions past, the Federal Reserve has implemented incremental increases. These new rates now average about 7% – not even close to the high end of the scale. The Fed has a few more increases planned, but buyers who close on properties now lock in the current rate, giving first-time homebuyers even more reason to jump into the market.
As your home appreciates over a period of time, the value may naturally rise – and with homeownership providing the largest source of wealth among families, this is certainly a compelling reason to start looking for your first home immediately.
As the needle has moved from seller’s market territory into the neutral zone and is still ever closer to a buyer’s market, housing inventory has increased. What does this mean for first-time buyers? Not only are house prices in California dropping up to 30%, but the amount of property available is increasing, giving buyers more options and breathing room. While last year saw Mission homes for sale commanding multiple offers and a disproportionate number of buyers vying for a limited amount of properties, the current market has equalized considerably. Buyers can now enjoy a more expansive home search – not to mention much better prices than last year.
Working with an agent
There are countless benefits to working with a real estate agent, but for first-time homebuyers, this relationship is essential. Agents not only provide unparalleled access and expertise, but they also can navigate the shifting market with ease. Buying real estate is often the single most significant purchase a person will make, and the experience can be thrilling – and also emotional. Working with a reputable agent protects the buyer from impulse buying or losing sight of the non-negotiable list of requirements the new property must possess. And with their savvy negotiation skills, agents make sure the buyer gets not only the home of their dreams but also a lucrative deal with a strong return on investment potential.
Agents impart crucial wisdom, as well. Whether you’re wondering how to avoid a bidding war, how to buy under market value, or even which important questions you should ask during the home buying process, your realtor is an invaluable source of knowledge. Best of all, working with an agent ensures you won’t overpay. When you find a property of interest, your agent will compile a comparative market analysis report to confirm the list price of the house in question aligns with the comparable properties in the area – so you can be sure that the Potrero Hill house price is reasonable.
Consider your finances
Are you interested in buying your first home in the San Francisco real estate market? Contact Matt Woebcke Real Estate today to begin touring properties.