As we have followed the real estate market over the past few years, we have seen some extreme highs and lows, in terms of property values and numbers of sales. Some people wonder if they should refrain from buying a home until the market cycle reaches a low, presenting lower home prices.
Trying to time the market in such a manner may not provide you with the benefits or savings you were hoping for. The Dallas Texas real estate market is a prime example right now – with home values plummeting in the rest of the nation, neighborhoods in Dallas are actually experiencing an increase in values.
Time May Not be on Your Side
Deciding to delay purchasing a home could result in a sudden change in the economy or in buyer attitude, suddenly forcing up the prices of homes in the neighborhood you want to live in. When the market becomes “hot” again, there can also be intense competition to buy, leading to bidding wars that further drive up the prices of homes.
Do not let yourself get caught in this situation. The economy is about as easy to predict as the weather, so move forward when the time is right for you.
Those Pesky Interest Rates
We are seeing unusual behavior regarding interest rates right now. Normally, as the housing market becomes depressed, interest rates tend to rise. This means that even though you may be able to afford the purchase price, high interest rates can put the monthly payments out of your reach.
Determine when you feel comfortable pursuing a purchase in the Dallas real estate market, then move forward only when you are ready. No matter what the housing market is doing, houses usually earn yearly gains in value when averaged over the long run, and waiting to get in could mean you miss your window of opportunity.