Is right now a good time to buy a house?
Real estate analyst Jack McCabe, from McCabe Research and Consulting, says there are several factors that could make it easier for homebuyers to enter the market.
“We're in the midst of a real estate downturn, without a doubt, and all you have to do is look at the numbers right now. Inventory in the state of Florida has tripled in the last 18 months,” he said. “24% of the listings have lowered their prices in Broward County, the condo inventory has doubled in the last 12 months.”
McCabe said the amount of inventory on the market and how long houses take to sell are key in determining whether it is a buyer’s market. Right now, both of those are up.
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There are also other indicators the market could cool down even more, he said.
“And when you see 24% of the people on the MLS have lowered their price, 5,000 of them here in Florida have put ‘motivated’ on their multiple listing with the MLS, which translates to ‘we are willing to negotiate, bring us an offer,'" he said. "Compared to a year ago, it's almost a complete switch."
Potential homebuyers should take steps to figure out if they are ready to buy a home. Experts suggest checking your credit months leading up to starting your home search. This can give you an idea of whether you will be approved at a higher or lower mortgage interest rate.
Other factors to consider:
- Debt-to-income ratio
- How much you can put into a down payment
- Property taxes in the area
- Cost of property insurance
