Many homeowners today are wondering whether they should buy or sell now or wait it out. Waiting on the sidelines in hopes that home prices or interest rates will drop significantly is always an option. However, those changes can take months to happen, and waiting may not be practical if you don’t have the luxury of time.Before making a decision, take a close look at your finances. Determine whether you can comfortably afford the home you want today, taking into account your mortgage payment, property taxes, insurance, maintenance, utilities, and closing costs. It’s also important to review recent comparable sales in both your current neighbourhood and the area where you hope to buy.
There are situations where waiting may make sense. For example, you may want to hold off if home values in your area are declining, inventory is increasing considerably, your finances are currently tight, or you’re expecting a sizable bonus or inheritance that could strengthen your down payment. Paying down existing debts may also be worthwhile if it could help you qualify for better loan terms.
On the other hand, trying to perfectly time the market can be difficult. Real estate markets and interest rates can change unexpectedly, and waiting for the “perfect” combination of lower prices and lower rates may mean missing an opportunity that works well for you today.
Takeaway: The right time to buy or sell is ultimately based on your personal circumstances, not simply on trying to predict the market. If you can comfortably afford your move and the home meets your needs, waiting for rates or prices to change may not be necessary. And if interest rates drop significantly after you purchase, refinancing may be an option later, depending on your circumstances and lender requirements.
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