The real estate market is always up and down. It has many unique aspects to it that help to dictate if it is a good time to buy or sell. If you want to buy a home in South Carolina, there are a few things you can look at to know if it is a good time to do so.
Forbes explains that the real estate market has two general phases. The market either has many homes for sale and few buyers or few homes for sale with many buyers. In the first situation, it is a buyers’ market because there are more homes to buy and less competition. This is ideal if you want to get the best deal. The second situation is a sellers’ market because there is a lot of competition for the homes on the market, which means sellers can be choosy about which offer they take. Ideally, you want to buy in a buyers’ market because this will give you the most options and lower the risk of a bidding war.
You also want to keep an eye on interest rates. Often during a buyers’ market, the trade off for having less competition is that you will pay higher interest rates. The interest rate is important because it adds onto the cost of the home. You want a low interest rate because it will allow you to buy more home.
You may not get lucky enough to find a low interest rate during a buyers’ market. If this is the case, you can wait until the market changes or you could buy and refinance your mortgage later at a lower interest rate. It really depends on what works best for your situation. This information is for education and is not legal advice.