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What Are the Pros and Cons of Waiting Out the Housing Market?

The housing market has rebounded strongly since the pandemic, and even with recent increases to interest rates this year, the housing market remains steady and people continue to buy up more homes. This has led many to wonder if they should purchase a home immediately, or wait to see if the market comes down. If you are interested in buying a home in Jacksonville, Florida, and have questions about when the best time to buy a home is, North Star Mortgage, Inc. can help. Read on to learn about the advantages and disadvantages of waiting out the real estate market to buy a home.

The Advantages of Waiting to Buy a Home

dillon-kydd-XGvwt544g8k-unsplashWaiting to buy a home could pose certain benefits to some homebuyers. Buying a home quickly and finalizing a deal that you are not fully satisfied with just because many other people are buying could result in overpaying for a less than ideal property and regret. If you choose to wait to buy a home, you could take steps to improve your credit and pay down more debt, which would allow you to ultimately get a better mortgage rate. Waiting to buy would also allow you to update your budget and save more for a down payment when you do decide to buy. Additionally, while you wait to buy, you could familiarize yourself with the homebuying process so you are less overwhelmed when you begin the process.

The Benefits of Purchasing a Home Now

There is still a high demand for houses and not as many homes available, and rents are currently increasing, so there are also many reasons to buy a property now rather than wait. Also, it has been assumed that because there has been a recent increase in interest rates, mortgage rates will increase as well. Therefore, waiting to buy a home could prove to be risky because if you wait to buy until prices come down, even if home prices have decreased, mortgage rates have increased, so you will likely still end up paying a higher amount  for a home that would have cost less before. Even though mortgage rates are likely to increase and there is a high demand and low inventory for homes, the market has remained stable and there is no guarantee that the real estate market will crash.

Should You Wait to Buy a Home or Purchase One Now?

It is virtually impossible to predict exactly what will happen with the housing market. If you wait to buy, you could potentially find a home that fits your budget while improving your chances of getting a better mortgage rate. However, if you are fully committed to purchasing a home now and in a financial position to do so, you should continue to look. If you need assistance financing your home in Jacksonville, Florida, contact North Star Mortgage Network, Inc. today.

Getting started is easy. We offer very competitive rates, have great service, and always close on time.

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