It’s no secret - mortgage interest rates are going up, the new tax law will hit harder in New York than most of the country, and the tight inventory market is putting pressure on prices. All of these factors will increase the carrying costs of homes. For most, a modest price increase in monthly mortgage interest, will not likely discourage a purchase. For the wealthy, a reduced tax deduction will not likely affect their decision to buy. For the average buyer, higher prices translate to higher monthly carrying costs, which as long as they are within a manageable range, will not deter a purchase of a home that will benefit the family, give him/her enjoyment and future appreciation.
But will all these forces eventually put enough pressure on the consumer that it will reach a tipping point and turn things in the other direction? It would be helpful to have a crystal ball – but most of us do not have such forecasting tools! The best thing to do is assess your individual situation and make decisions that work for you and your family, now. For example, if you have been waiting to sell your home when the market reaches its peak, you will likely miss it, since only as it moves downward will you know for sure. So why not evaluate today, where things are at for you and factor in your future plans and see if it makes sense to sell your home now. If you plan to retire and wish to downsize, consider that as your home goes up in value, so will the home you purchase. The important thing is that you have liquidity and can go forward with your plan. If you are thinking of upgrading, see if the current market will allow you to sell and buy another home with whatever your budget allows.
“Timing is everything!” The coming months are some of the best selling months of the year. Many want to be in their new homes to enjoy all, or at least some, of the summer. “About 40% of the year’s sales take place from March through June, according to the National Association of Realtors.”*
Consider how today’s real estate market factors into your plans. Call us and we will give you an assessment of the market as it relates to your property so you will know where you stand. Then contact your financial advisor, and review your plans and see if it’s the right time to put things in motion.
We can help you, just call us! At Beninati Associates, we’re looking out for you! Our office is conveniently located at the corner of Main Road and Hortons Lane in Southold; telephone is 631 765 5333; email is email@example.com; Talk to you soon!!!
*Source: The Wall Street Journal, March 8, 2018, Home Sales Show Signs of Softening, page A3.