Just as there are a kaleidoscope of people, there are also varying types of homebuyers. Some are decisive, knowing what they want and ready to make an offer as soon as an ideal home comes along. Others need to move in a timely manner due to a new job or to be closer to family and can't be too picky. Then you have those perched on the fence waiting, hesitant to move forward even when they identify their perfect home. The delay in purchasing is caused by multiple factors, such as anxiety over market conditions, or fear of missing out on a "better" property or concerns of over-paying. COVID-19 is adding another layer of worry and uncertainty surrounding the state of the economy and the housing market. These concerns are completely understandable, as this is the largest purchase that most people will ever make, but there are a few big reasons why it's time to stop waiting for an opportunity that might never come and hop off the fence.
Mortgage interest rates are hovering at record lows, which boosts a person's buying power. Buyers are often surprised with how much more they can afford due to the lower monthly payments from the lower interest rates.
Home prices continue to escalate every month. Clients are continually being priced out of their desired city or neighborhood due to their hesitation. No one wants to overpay on a property, but if a home is in an ideal location and checks all of the boxes, but appears to be on the higher end of the price points in the neighborhood, it's important to then consider the length of ownership. If not trying to do a quick flip it may be justified to pay a higher price for a long-term home that meets all of a family's needs—especially when considering that real estate has proven to appreciate significantly over time in Central Oregon.
The housing market has rebounded from the crisis in 2008 and has already far surpassed where home prices were before the crash. Even with this pandemic, sales stuttered, but prices continued to climb. This can be directly attributed to the desirability and relative affordability of the area. Bend and the Central Oregon area is on everyone's radar from all over the country, and there continues to be a surge of new residents relocating to the area with no signs of a slowdown. Prices may seem high to some, but for those moving from metropolitan areas, this is an affordable price to pay to live in a dreamlike location.
Overall, it's reasonable to be cautious when buying. Most hesitant buyers are hopeful that home prices will drop and that better deals are ahead—but a smart consideration is, what if home prices continue to climb and interest rates go up? It's never a good idea to make a hasty decision, so gather all possible information, assess your personal situation and if a purchase is in your near future within the next six months or less, get prepared to make that move sooner than later.