Is now a good time to buy a house?
According to real estate analyst Jack McCabe of McCabe Research and Consulting, there are several factors that could make it easier for homebuyers to enter the market.
“We are undoubtedly in the midst of a downturn in the real estate market, and you only have to look at the current numbers. Inventory in the state of Florida has tripled in the last 18 months,” he said. “24% of listings in Broward County have reduced their prices, condo inventory has doubled in the last 12 months.”
McCabe says the number of homes on the market and the time it takes for them to sell are key factors in determining whether it’s a buyer’s market, and both are currently on the rise.
There are also other indicators that the market could cool down further, he said.
“When you see that 24% of people on the MLS have lowered their price, 5,000 of them here in Florida have written ‘motivated’ on their multiple listing on the MLS, which means ‘we’re willing to negotiate, make us an offer,'” he said. “It’s almost a complete turnaround from a year ago.”
Potential home buyers should take steps to find out if they are ready to purchase a home. Experts recommend checking your credit score months before you start your home search. This can give you an idea of whether you will be approved for a higher or lower mortgage rate.
Other factors to consider:
- Debt-to-income ratio
- How much you can pay as a deposit
- Property taxes in the region
- Costs of property insurance
