Whether you’re aiming to get your foot on the property ladder for the first time, or you’re already a homeowner and you’re thinking about making a move, there’s one key question to answer, and that’s whether the timing is right to make a real estate purchase.
This is always a multifaceted subject, and one which deserves your full attention, so let’s look at a few good pieces of advice as well as some objective facts that should sway your decision one way or the other.
Prices are Rising
First and foremost, you need to be cognizant of current property price trends before making a commitment to move.
Right now the national trend is for strong growth, with average prices increasing by 12% in the past year, which is a record figure. Meanwhile in Yucatan itself, price rises have been even stronger still at 14% over the same 12 month period.
This is a double-edged sword, because while those who already own property might be in a stronger position to relocate without taking too much of a hit, first-time buyers will have to cough up more cash if this trend continues.
We’re also potentially sitting on a scenario in which house prices are approaching a peak, at which point they might tail off or even shrink, depending on other economic and political factors further down the line.
If you are planning to buy a home and stay in it for many years to come, then short to medium term fluctuations in home prices shouldn’t be a concern. If you aren’t confident about what your own future might hold and you want more flexibility, it’s harder to make a commitment to buy at the moment.
Interest Rates are High
Another pivotal point to bear in mind when weighing up the pros and cons of buying a house at the moment is the current and sustained level of interest which is being enforced by the central bank, and which in turn has a big impact on the affordability of mortgages for the average homebuyer.
The 11.25% benchmark rate was introduced in the spring, and in June it was voted to be retained by decision-makers at the bank, with this decision being made to continue the battle against inflation, amongst other things.
Contrast this with the sub-6% base rate that was seen back in early 2022, and it’s easy to see how it’s harder to justify the likelihood of higher repayment costs for anyone who’s on the fence about purchasing a home as we speak.
Of course there are still great deals out there from reputable lenders, meaning you can get a home loan at a low interest rate if you shop around. It just takes time to research all the available avenues, and also to ensure that your own financial status is on an even keel. People with poor credit scores and small deposits, as well as limited household incomes, may be less fortunate in this regard right now.
Personal Circumstances are Everything
Clearly the outside factors that will influence your decision about buying real estate have to be considered in the context of your own state of affairs, as mentioned.
For instance, if you are realistic about what you can afford and you do not anticipate your life circumstances changing soon, then the answer to the question of whether or not now is a good time to buy a house is almost always ‘yes’.
Being realistic is really what matters here, so as long as you avoid getting caught up in the pursuit of an elusive ‘dream’ home, and you don’t overstretch yourself and become open to derailment by unforeseen dilemmas in the coming weeks and months, you don’t need to hold back.
Uncertainty is Inevitable
The last point to make is that anyone who makes confident predictions about how the housing market will shape up down the line, and whether you should strike while the iron is hot or hold off, must do so with a hefty dose of uncertainty attached.
As we’ve seen over the past few years, periods of stability can quickly be upended by leftfield occurrences, and the influence of the global economy over the prosperity or otherwise of a given region or country is so vast and mysterious as to be essentially unknowable.
Thus there is an element of risk with any home purchase, and so even those with the firmest financial foundations beneath them need to be prepared for worst-case scenarios, and have a plan in place to deal with rainy days that might arrive out of the blue.
The long and the short of it is that while now might not be a great time to buy property if you’re doing so as an investment, for those looking to secure their own home and build a life in a particular place, it’s worth considering this month.