The best time to have purchased a home was probably about 15 months ago when homes prices were very depressed and interest rates were very low. The “Best Time” can only be identified as a past historical event since it needs to be measured against on-going events. That being said, I would say that as I write this in June 2013, it is still a “very good” time to seriously consider purchasing a home. Here are my thoughts.
While median home values have seen about 14% increase to $177,000 over the past year, they are still far below the median home price of late 2006 which was about $231,000. The lowest median price of $150,000 was January of 2012. So we are still 23% off the high.
Mortgage Interest Rates – Let’s look at 30 year fixed rate. They have risen from mid to high 3% to just over 4%. This increase has affected buying power, but they are still historically VERY low rates but are expected to go higher.
The biggest challenge facing buyers and their agents is lack of inventory. There are roughly 28% fewer listing than there were a year ago. This supply and demand imbalance is what is causing the double digit appreciation in the median price range.
The upper bracket properties are another story which I will not address here except to say it is more involved and requires working with a knowledgeable agent.