Prior to the outbreak of COVID-19, 30% of consumers felt that a recession in 2020 was likely with half of those consumers saying they would postpone buying until after if ta recession took place. While half felt this way, the other half had no qualms about continuing their house hunt. No one can truly “time” the market, stocks or real estate. So, with mortgage rates being the lowest they have been in decades, you have to ask yourself, is now a good time for YOU to buy?
Time is probably the most important thing to consider when it comes to buying homes for sale in South Lake Tahoe. How long you plan to stay in one spot will help you determine if now is a good time to buy. If this purchase is a long-term investment, proceed ahead. After all, economic situations will improve should a long-term recession actually happen. In fact, over time, housing usually does well. If this purchase is short term, there is really no telling what prices will look like in a year or two when we don’t know what will actually happen with the economy.
Next up is money. How much you have saved and the type of financing you qualify for are huge factors that can make or break a home purchase. If you have a lot of money saved, you are in a good position to buy Lake Tahoe Real Estate. If your credit is good, you will get pre-approved for a mortgage with a great rate, which saves you money in the long run. With rates being as low as they are, you should take advantage of this while you can if you are in a good position to buy.
Local economic health is something to consider. Not every location is impacted by a recession in the same way. Some eventually get the impact, but not until later, or some don’t experience it at all. As a buyer you have to look at things like how well diversified the local economy is, what is the economic outlook, the employment rate and more. Your local Lake Tahoe Realtor can provide a custom market analysis which can help provide some insight on these details.
Home prices are something else to think about. If a long-term recession happens, prices on homes for sale in South Lake Tahoe may drop. Which means you could snag a great deal. Of course, that also means that property values may dip until the economy recovers. With that being said, if you are purchasing for investment purposes and plan to sell within the next couple years, you may want to wait a bit. If you plan on staying for a while, home values may not be as much of an immediate impact for you. Talking with your Lake Tahoe Realtor on what exactly your real estate goals are will offer some great insight on this.
You also really need to ask yourself: Do you REALLY want to buy a home? You are going to be paying a mortgage, whether it is yours or your landlords. So, you may as well invest in yourself if you are able. However, there are many factors that come into place, so be honest with yourself. If you aren’t sure, your Lake Tahoe Realtor is a wonderful source and can provide a lot of the information needed to help you come to an educated decision you can feel confident about. For more information on purchasing homes for sale in South Lake Tahoe, feel free to give me a call. I would be happy to help.