“We’ve been on the fence. Do you think it’s a good time to buy right now?”
That’s a version of what I call “The Crystal Ball Question.” Let me explain…
What determines whether it’s a good time to buy? Factors include:
- Will prices go up or down?
- Will the for-sale housing inventory decrease or increase, allowing a greater selection of homes to choose from?
- Will interest rates go up or down, which would raise or lower your mortgage payment?
Will it become a better or worse time to buy in the future? Will you look back happy that you bought or kicking yourself that you didn’t buy?
So all of these implicitly requires predicting the future. Hence the crystal ball.
No one knows for sure (myself included).
After all that over-analysis, I’ll give you my simple opinion:
Yes, it’s a good time to buy. And that’s because of the extremely low rates.