Our market is shifting, so if you’re a buyer trying to time the market, there are a couple important factors to consider.

When it comes to timing the market, a lot of people are waiting for a correction or a specific time when everything is on the rise. Our market goes through cycles, and right now we’re seeing a shift take place. Inventory is rising and prices are stagnating. While we haven’t seen an overall dip in prices yet, we’re definitely starting to see some changes, and some people are waiting for some sort of impending doom.

As a buyer, if you want to time the market, you must ask yourself:

• Where are you living now and do you currently own a house? Is that going to affect the home you’re living in just as much as what you’re looking to buy?

• How are interest rates going to affect you? As interest rates rise, it increases what you’ll pay for a mortgage and lessen your buying power.

For example, if you buy a $300,000 house at a 5% interest rate, your monthly mortgage payment would be approximately $1,610 and you’d pay roughly $279,767 in interest over the life of the loan. If you bump that rate up to 5.5%, your monthly mortgage payment would be $1,703 and you’d pay $313,212 in interest over the life of the loan. That’s almost a $100 difference per month and $34,000 in total over the life of the loan.

"As interest rates rise, it increases what you’ll pay for a mortgage and lessen your buying power."

If you can afford that extra $100 per month, that’s great, but it’s still a lot of extra money out of pocket. If that home’s price was going to dip $10,000, are you better off buying it now or after it dips? If you think about it, even if you wait until it dips, you’ll still end up paying more.

If rates go up by 0.5% and you’re still qualifying based on payment, that would reduce your buying power to the point where you’d only be able to afford a $284,000 home. Not only does your buying power get reduced by $16,000, but you’d still have to pay $296,507 in interest over the life of the loan—a $17,000 increase! The payment is the same, but you’re ultimately giving a lot more money back to the bank instead of putting it in your pocket.

You need to offset these factors if you really want to time the market. At the end of the day, I believe now is a good time to buy. We’re still in a bit of a seller’s market, but conditions are increasingly starting to favor buyers. You’ll have more homes to choose from, more time to make a decision, and a better chance of getting a good deal than you would have in previous months.

If you have any other questions about our Las Vegas market or you have any other real estate needs, don’t hesitate to reach out to me. I’d be glad to help you.