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Buying a Home in Uncertain Times


In our fast-moving, deeply interconnected world, uncertainty in any facet of our lives can make major decisions like buying a home intimidating. However, buying a home is about investing in yourself, your family, your finances, and your future. Are you worried about buying in an unstable market? Let’s take a look at what you need to know.

Teresa Gregory Headshot
Teresa L. Gregory, DBA, CMB President, Traditions Mortgage and President, York Region, NMLS #414909


Why is The Housing Market Uncertain Right Now?

Whether you watch, read, or listen to your news, you’ve likely heard about the housing market’s uncertainties. Many people looking to buy a home come to us with furrowed brows and worry lines, looking for answers.

Why the housing market is uncertain is a million-dollar question. The answer has to do with both the economy and high inflation. At the federal level, interest rates are increasing to combat inflation. Higher interest rates equate to higher monthly mortgage payments. As a result, some borrowers looking to purchase earlier this year have decided now is not the right time.

The market is also uncertain in terms of supply and demand. The supply of properties for sale is low. Low housing supplies can result in bidding wars, making it hard for borrowers to win—especially if a competing buyer has cash. While many programs are available for those looking to buy, the low supply of properties makes some sellers hesitant to sell to those who are financing versus those that can purchase with cash.

The Benefits of Selling or Buying a House During Uncertain Times

It’s no secret that rates are higher now than they have been, especially in the recent past. If we go into recession in the future, we may see those rates drop. But, the sellers’ market will likely continue for the foreseeable future. And, with fewer homes on the market, those that go up for sale tend to sell quickly and often for more than the initial list price, pushing the average buyer out of the process.

While it may be a seller’s market, that doesn’t mean it isn’t a good time to buy. Now is a great time to buy. Even with interest rates being higher than in most recent times, they are still at a historical low. For most people, a mortgage payment will be significantly less than renting. It’s also important to note that economists predict price increases will slowly build equity.

How to Decide When It’s the Right Time for You

There are so many factors that go into determining whether you are ready to buy a home. While risks always exist, anyone planning on staying put for the next four to five years is in an excellent position to buy—especially first-time homebuyers.

If you aren’t sure you are financially ready, reach out to a lender. Many borrowers are surprised to learn they are “buyer ready” now and qualify for specific programs that can make financing more manageable. Remember always to reach out if you have a question. It doesn’t cost anything to speak with a lender or get approved.

In terms of financing, there are many options available to you. Your circumstances will determine your eligibility. Some of the most common programs include:

  • First-time home buyer programs
  • Programs for low- and moderate-income homebuyers
  • Conventional & Nonconventional loans
  • Government Loans (such as FHA, VA, or USDA)
  • State, City, and County Programs

When it comes down to it, there’s never a good or bad time to buy. Ultimately, it depends on whether it’s the right time to buy for you. If you’re thinking about buying, you may be ready.

Protecting Yourself and Your Future When Buying in an Unstable Market
For many buyers, even with the market’s fluctuating stability, buying a home is still one of the more certain investments. However, taking the proper precautions to protect yourself and your financial future is still essential.

The first step is finding out if you’re pre-approved. Consider reaching out to the lender before working with a real estate agent. This step will help you and your agent find properties that fit your financial and personal parameters.

A pre-approval from Traditions Bank increases the likelihood of winning a bid. If you are considering buying a home, call us today. In just minutes, you’ll have a clearer picture of your future homebuying options and know what you need to do to meet your goals.

Already pre-approved with a different lender? Consider seeking a second opinion. There may be additional programs or grants you could qualify for to get competitive interest rates, which could save thousands over the life of the loan, save you time, and provide you with a sense of certainty in these uncertain times.

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