Buy a house now or wait some time to see the evolution of the real estate market and interest rates. That's the question that arises for those who are considering purchasing a home. Generally speaking, experts point out that it is a good time to buy, although it also depends on personal circumstances.
Buying a house now, yes or no?
On the one hand, high interest rates. On the other hand, the evolution of the Euribor, which so far this year remains more or less stable at around 3.6%. These are the two fundamental issues buyers value when deciding whether to buy a home now or wait.
The price of money is indeed at high levels, making access to financing more difficult. However, a change in the trend would not necessarily affect positively potential property buyers.
The right time to buy
Everything seems to indicate that a change in trend is coming. After the interest rate increased to 4.5%, the European Central Bank could announce a 25 basis point cut at its next meeting. Good news for buyers? Yes, although with nuances.
That reduction means lower interest rates but could also stimulate demand for housing. With a real estate stock that has not grown at the same rate as this demand, the logical consequence would be an increase in prices. This supply shortage has caused housing prices to remain and even increase despite the economic situation.
In short, the rise in prices in the real estate market could accelerate if the demand for housing also accelerates, encouraged by more accessible financing. Therefore, buying a house now is a good decision. And not only to avoid the risk of revaluation but also because if there is already a property that meets all expectations, there is a risk that another buyer will get ahead of you.
Criteria to decide whether to buy a house or not
Regardless of macroeconomic indicators or housing prices, personal circumstances are crucial to make an informed decision:
• Financial situation: ideally, the mortgage payment shouldn't exceed 30 – 35% of net income. A simple calculation is enough to determine your debt capacity.
• Financial cushion: essential to face the initial payment and the expenses associated with the purchase. Unless you can request ICO Guarantees that give access to financing of 100% of the price of the home.
• Long-term property: if there is no forecast of a move shortly, it may be the best time to buy a home.
To these three questions, we should add the evolution of the real estate market in the area of interest. If it is an active market in which prices have risen, if demand is high and if there are no plans to increase the housing stock shortly in that area, it is time to buy a home now.
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