Buying a home is one of the biggest financial decisions most of us will ever make, and with so much at stake, it’s completely normal to feel unsure about whether now is the right time. If you’re in the market for a new home in Lebanon, you may be weighing your options and wondering if you should buy now or hold off. The truth is, there’s no one-size-fits-all answer—it all depends on your unique situation. In this post, I’ll walk you through five key questions that can help you make a more informed decision. Plus, I’ll share how my team at Susan Cole Realty Group can assist you in finding a property that truly meets your needs.
1. What’s Your Budget?
Before diving into the home-buying process, you need to get crystal clear on your budget. Start by asking yourself: Can you afford to buy a home right now? A solid budget goes beyond just looking at your income and monthly expenses—you’ll also want to consider your financial goals and obligations.
Take into account your current debt, savings, and how much of a down payment you’re ready to put down. Don’t forget the additional costs that come with homeownership, like closing fees, property taxes, and ongoing maintenance. It’s easy to focus on the listing price, but remember that owning a home comes with long-term financial responsibilities that renters don’t have to worry about.
If you’re uncertain about how much you can afford, this is where speaking to a mortgage broker or financial advisor comes in. They can help you determine what’s realistic based on your financial picture and goals, and whether now is a good time for you to buy.
2. What’s Happening in the Housing Market?
The real estate market is constantly shifting, and timing can have a big impact on your home-buying experience. If the market is hot, with lots of buyers competing for limited inventory, you may face bidding wars and end up paying more than anticipated. In a slower market, on the other hand, you could find yourself with more negotiating power and a better chance of landing a good deal.
Market Demand and Price Trends
The Upper Valley, including Lebanon and other towns like Hanover, Lebanon, White River Junction, and Norwich, continues to be a desirable area to live due to its natural beauty, proximity to Dartmouth College, and high quality of life. Home prices in this region have been gradually increasing, but not at the rapid pace seen in other parts of the country. This means the area still offers relative affordability for buyers looking for a long-term investment. However, demand is steady, and buyers should act sooner rather than later if they want to take advantage of current prices before they rise further.
Mortgage Rates
In 2024, mortgage rates remain elevated compared to the last decade, which continues to impact buying power across the U.S. However, this higher rate environment can also create opportunities. As some buyers may be priced out of the market, competition could lessen. For those who are financially prepared, purchasing a home in the Upper Valley now could provide the advantage of less competition and the potential to refinance when rates eventually drop.
It’s important to remember that interest rates are unpredictable, as we’ve seen in recent years. Mortgage rates are projected to decrease slightly in 2024, though they are unlikely to return to the historically low levels seen during the pandemic. According to multiple sources, the average 30-year fixed mortgage rate is expected to remain above 6% for most of 2024, with some estimates predicting it could drop to around 6.2% by the end of the year. The National Association of Realtors, Fannie Mae, and the Mortgage Bankers Association forecast that rates could continue to decline into 2025, potentially dipping below 6%
Don’t wait on the rate—focus on finding the right home, knowing you may have the chance to refinance in the future if conditions improve.
Inventory and Supply Challenges
Like many regions, the Upper Valley has been dealing with low housing inventory, particularly in highly desirable areas. Fewer homes available means that buyers need to be prepared to act quickly when they find a suitable property. Still, the market may provide some relief if you’re flexible on location or property type. Towns slightly outside the major hubs like Lebanon and Hanover might have more inventory and less competition.
Local Economic Conditions
The local economy in the Upper Valley is influenced by sever al large institutions like Dartmouth College, Hypertherm, and Dartmouth-Hitchcock Medical Center, which provide stability. These anchor employers make the area resilient even during broader economic downturns. Additionally, the region is becoming more attractive for remote workers seeking a better quality of life, which can further drive demand.
Long-Term Investment Potential
The Upper Valley’s natural charm and steady growth make it a good candidate for long-term appreciation. Even with higher upfront costs, owning property here could be a solid investment, especially if you plan to hold onto it for several years. The region has shown consistent appreciation over time due to its desirability as both a place to live and a destination for second-home buyers.
3. What Are Your Long-Term Goals?
Your long-term goals are a critical part of the decision to buy or rent. If you’re planning to stay in Lebanon for the foreseeable future, buying a home now might be a smart investment. Homeownership can provide you with financial stability, offer a sense of security, and allow you to build equity over time.
On the other hand, if your plans are still in flux—whether you’re considering a job change or moving in the next few years—renting might make more sense. Renting gives you flexibility, which can be especially important if your life is in a state of transition. Keep in mind, though, that while renting provides short-term ease, you’re not building equity or taking advantage of potential home value appreciation in the long run.
Ultimately, the decision to rent or buy comes down to how you envision your future. If you feel confident that you’ll be in Lebanon for a while, buying could be a great move, but if not, renting can offer the flexibility you need.
4. How Do Your Personal Circumstances Factor In?
Life is always changing, and your personal situation plays a significant role in determining whether now is the right time to buy. Ask yourself, are you in a stable job? Do you have good credit? Are you ready to settle down in one place? If the answer is yes to these questions, it may be the right time for you to make the leap into homeownership.
But, if you’re planning major life changes—like starting a family, going back to school, or switching careers—you might want to wait until things are a little more settled. Buying a home is a big commitment, and it’s important to feel confident about the timing in your life.
5. What Are Your Priorities?
Lastly, consider what’s most important to you in a home. Do you have a particular neighborhood in mind? Is there a home you’ve fallen in love with that checks all your boxes? If the perfect home is on the market right now, it might be worth going for it, even if the timing isn’t perfect.
However, if you’re willing to be flexible, waiting for the right property might be a better option. Sometimes the dream home isn’t on the market when you’re ready to buy, and it’s okay to hold out for something that fits your needs and lifestyle better.
How Susan Cole Realty Group Can Help You Find the Right Property
If you’re considering buying a new home in Lebanon, the agents at Susan Cole Realty Group can help you find the property that is right for you. Our team of experienced agents has an in-depth knowledge of the local real estate market and can help you navigate the buying process. We’ll work with you to understand your needs and priorities and help you find a property that meets your requirements. Whether you’re a first-time buyer or an experienced investor, we’re here to help you achieve your real estate goals.
Deciding whether to buy or wait when it comes to buying a new home in Lebanon is a personal decision that depends on a variety of factors. By asking yourself these five questions and speaking to a real estate agent at Susan Cole Realty Group, you can make an informed decision that is right for you. Contact us today to learn more about how we can help you find your dream home here in Lebanon. (603) 443-3149