Should You Upgrade to a Slightly Better Home or Wait?

As the real estate industry continues to recover from the real estate bubble, many homeowners face a dilemma. While they may be ready to move from an existing home to a new one, however, the market hasn’t completely recovered. If you feel like you can’t wait to upgrade, consider these reasons to wait a little longer before searching for a new home. Housing Inventory Shortage The national housing inventory shortage brings both good news and bad news. Your home will be one of few on the market, making it more likely to sell to homebuyers looking for something in your price range. You may even find that you have multiple offers on your property, especially if your home is in a desirable area of town or has features many homebuyers currently want, such as being ideal for senior citizens or growing families. This may lead to a situation where multiple offers come in at once, letting you earn top dollar for your property. As a buyer, a housing shortage can be a bad thing. You may quickly realize that you can’t find a house with the specs you want at this time. Instead of waiting for the market to improve, will you settle for less of a home than you actually want to be able to move now? In a couple of years, you may find you have far more options and less competition when you do find the home you like. Homebuyers Still Waiting You will likely find you haven’t been the only consumer waiting to make a change. In many markets, housing prices dropped so dramatically, many homeowners have been forced to remain in their homes until real estate values increase. Many renters have also been delaying a home purchase until after the economy recovers. As the housing market begins its gradual climb upward, more homeowners will put their homes up for sale. This will give consumers more options, potentially driving prices downward as supply once again begins to exceed demand. Interest Rates Steady Homeowners may currently feel the pressure to take advantage of low interest rates, but that doesn’t necessarily mean you have to buy a house now. The Federal Reserve plans to up interest rates in mid-2015, with many officials stating the increases shouldn’t begin until 2016. Even when hikes begin, they’ll be slow, giving homebuyers time to lock in low rates at the beginning of increases. Even if you wait until after the increases, you can still get a great deal. Experts have found that when the interest rates fall, home prices tend to go up. This means as the interest rates rise, sellers will be forced to keep house prices low to attract reluctant buyers. When it comes to selling and buying homes, timing can be crucial. With both the economy and real estate market continuing to improve, more homes will be going up for sale, providing great opportunities for consumers everywhere. If a homeowner chooses to wait to upgrade, he should keep an eye on interest rates and real estate prices to make sure he takes advantage of any great deals that emerge as a result of a sluggish market.