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Why Now is the Best Time to Buy a Home in Southern California

Updated: Dec 1, 2025

If you're thinking of buying a home and planning to “wait until interest rates drop,” you're not alone. It’s a common thought—but one that could actually cost you more in the long run.


Let’s break down why now may actually be the best time to buy, especially if you're eligible for a VA loan or qualify as a first-time homebuyer.



First-Time Buyer Benefits Are Back


If you haven’t owned a home in the past three years—or since 2007—you’re officially considered a first-time homebuyer again. This status opens the door to several advantages:


  • Down payment assistance programs

  • Reduced closing costs

  • Special grant or tax credit opportunities (varies by county/state)


When combined with a VA loan (which already offers 0% down and no PMI), you’re in a strong position to buy with little to no upfront cost.


The Truth About Waiting for Lower Rates


Here’s what most buyers don’t realize:


  • When rates drop, prices jump. More buyers rush into the market, increasing demand and driving up prices.

  • Competition increases. Homes that sit today may have multiple offers tomorrow.

  • Sellers lose flexibility. You lose the chance to negotiate on price, repairs, or closing credits.


Right now, home prices are soft, and sellers are often willing to help with closing costs or rate buy downs.


Real-Life Example: $700,000 Home


Let’s say you're buying a $700,000 home with a VA loan.


  • Buy now at 6.5%: Lower home price, possible seller credits, and less competition.

  • Wait until 4.5%: Prices rise 7% = $749,000. You save on rate, but pay more upfront—and may have to compete in a bidding war.


The good news? You can refinance later if rates drop—but you can’t rewind to today’s home prices.


Understanding VA Loans


VA loans are a fantastic option for eligible buyers. They provide several benefits that can make homeownership more accessible. Here are some key features:


  • No down payment required: This can significantly reduce the initial financial burden.

  • No private mortgage insurance (PMI): This saves you money on monthly payments.

  • Competitive interest rates: VA loans often come with lower rates compared to conventional loans.


These features make VA loans an attractive choice for many homebuyers.


The Importance of Timing


Timing is crucial in real estate. The market can change rapidly, and waiting for the "perfect" moment might not be the best strategy. Here are some factors to consider:


  • Market trends: Keep an eye on local market conditions. Prices can fluctuate based on demand and inventory.

  • Personal circumstances: Your financial situation and readiness to buy should guide your decision more than market speculation.


Ready to Compare Your Options?


Want a personalized breakdown of buying now vs. later with your VA eligibility and first-time buyer benefits? I’m happy to run the numbers and walk you through the options with no pressure—just facts.


📅 Book a free consultation

📞 866-322-5487


Helping Southern California homebuyers make smart moves since 2008.


Conclusion


In conclusion, the current market offers unique opportunities for first-time homebuyers and those eligible for VA loans. Don't let the fear of rising interest rates hold you back. Take advantage of the benefits available to you now.


Andrew Georgitsis, Realtor®

SoCal Realty & Investments | DRE#02266192


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