Listing Courtesy of LONG AND FOSTER-BETHANY
A few weeks ago, an eye-catching article surfaced on the Investopedia web site—one with the arresting title of “When is the Right Time to Buy a Home?” I have always assumed that for prospective area home buyer, the answer to that question varies by the individual circumstances. But if there is a more cut-and-dried universal answer, it would certainly be good to know it. Definitely worth reading.
Despite its name, Investopedia is not an encyclopedic history of investing. Its own history is interesting, though—it started in Canada, was acquired by Forbes, then sold a short while later to ValueClick for $42,000,000 (talk about good investments)!
The article that was to supply the answer to “When is the Right Time to Buy a Home?” did turn out to have the right answer, though it’s a little less definitive that you would hope—prospective Bethany Beach home buyers don’t get the simple “NOW” or “LATER,” which would be most useful. However, before the final answer is presented, scattered between the many ads and other clickbait that apparently pay for Investopedia are some interesting current facts and observations, and several cop-outs.
When it comes to the big question, “When is the Right Time to Buy a Home?” by halfway through the article, it’s looking a bit more like “now” than “later.” It cites The National Association of Home Builders’ Housing Opportunity Index, which now finds that nationally, the majority of homes are affordable for families earning a median income of $63,900. True, most Bethany Beach families don’t earn exactly $63,900, but still, it’s good to know. Reading on, we learn that this level of affordability has been better in the past, and might be better later “unless mortgage rates move higher in the future.” Since elsewhere on the site we find that “the consensus is that interest rates will rise,” it doesn’t take Sherlock Holmes to deduce where “When is the Right Time to Buy a Home?” is leading.
Or so you might assume, before the article quotes a saying on Wall Street: Don’t try to time the market, which Investopedia advises also applies to real estate. Oddly enough, it also says, “If you’re looking for an edge, interest rates are near historic lows so now appears to be a better time than most for purchasing a home.”
That’s a pretty strong hint, but the answer isn’t spelled out. Yet. There follow some bits of good advice (hire an inspector prior to purchasing a home; don’t buy a car while your credit is being checked; inquire about taxes) before we get to the ultimate heading, “THE BOTTOM LINE.” It took a while, but here is the advice Bethany Beach readers would have been looking for all along, bottom-linewise.
Investopedia’s answer for “When is the Right Time to Buy a Home?” is a lot more sensible than most: “When you can afford it.”
I couldn’t agree more. Even if all the other factors weren’t as positive as they are today, being able to make a good fit financially is at the top of the list. If now is that time for you—or if it’s time for you to put your own Bethany Beach home on the market—it’s also a good time to give me a call!
Real estate offices have been gearing up for the imminent spring selling season, the time when Delaware listings swell to meet the expected surge in buying activity. I sometimes put quotes around ‘selling season’ because so many factors go into home sales that it can be slightly misleading—we do sell homes all year long, after all!
But there is a lot of truth (and historical verification) to the idea that springtime brings a burst of new Delaware listings and accompanying selling activity. There can be lots of reasons why that happens, area homeowners who were reading The Wall Street Journal might have seen some extra reasons to hurry up and add their homes to the Delaware listings.
Some of those reasons have to do with weather; some with the economy.
The front page of WSJ’s Weekend Edition headlined the first piece of long-awaited good news: “Job Rebound Eases Fears of Spring Stall.” It explained payroll numbers showed upticks despite the widespread harsh weather that should have knocked them down.
Most economists had been on the fence about whether the years-long weak economic recovery would continue. Even though the previous two months of slowing growth had been attributed to the ‘endless winter’ blanketing much of the nation, it wasn’t clear that underlying weakness wasn’t also present. But the sudden improvement in the job picture, even as the weather failed to lighten up, was an unexpected event—one that could “ease worries” about the likelihood of a fundamental slowdown. In fact, forecasters were beginning to project that the negative economic effects due to the unusual weather (estimated at a loss of 1%) may be more than restored when the sun returns. Spring conditions are now expected to add an additional 1.2% to second quarter growth.
Even a slight rise in the unemployment rate was greeted as hopeful news. What sounded like a negative turns out to be the opposite: more people were returning to the workforce, a sure sign that workers see jobs beginning to reappear. Jobs have always been tied to real estate listing and sales activity, so this year, the NAR’s website truism may be on the mark:
“Spring brings rain and flowers – and possibly extra green in the final sales price of your home.”
Call/text 302-228-7871 or email me, Russell Stucki, REALTOR ® of Beach Real Estate Market to provide detailed information on Delaware homes for sale, investment and commercial properties, luxury and waterfront homes, condos/townhomes, new construction, lots and land, farms and equestrian properties located in but not limited to Bethany, Bethel, Bridgeville, Dagsboro, Delmar, Ellendale, Fenwick Island, Frankford, Georgetown, Greenwood, Harbeson, Laurel, Lewes, Lincoln, Milford, Millsboro, Millville, Milton, Ocean View, Rehoboth Beach, Seaford, Selbyville, Delaware.