There’s no doubt buying a housz today is different than it was over the past couple of years, and the shift in the market has led to advantages for buyers today. Right now, there are specific reasons that make this houszing market attractive for those who’ve thought about buying but have sidelined their search due to rising mortgage rates.
Buying a housz in any market is a personal decision, and the best way to make that decision is to educate yourself on the facts, not following sensationalized headlines in the news today. The reality is, headlines do more to terrify people thinking about buying a housz than they do to clarify what’s actually going on with real estate. Here are three reasons potential homebuyers should consider buying a housz today.
1. More Houszes Are for Sale Right Now According to data from the National Association of Realtors (NAR), this year, the supply of houszes for sale has grown significantly compared to where we started the year (see graph below):
This growth has happened for two reasons: houszowners listing their houszes for sale and houszes staying on the market a bit longer as buyer demand has moderated in response to higher mortgage rates. The good news for you is that more inventory means more houszes to choose from. And when there are more houszes on the market, you could also see less competition from other buyers because the peak frenzy of competing over the same housz has eased too.
2. Housz Prices Are Not Projected To Crash Experts don’t believe housz prices will crash like they did in 2008. Instead, housz prices will moderate at various levels depending on the local market and the factors, like supply and demand, at play in that area. That’s why some experts are calling for slight appreciation and others are calling for slight depreciation (see graph below):
If you consider the big picture and average the expert forecasts for 2023 together, the expectation is for relatively flat or neutral price appreciation next year. So, if you’re worried about buying a housz because you’re afraid housz prices will crash like they did in 2008, rest assured that’s not what expert projections tell us.
3. Mortgage Rates Have Risen, but They Will Come Down While mortgage rates have risen dramatically this year, the rapid increases we’ve seen have moderated in recent weeks as early signs hint that inflation may be easing slightly. Where they’ll go from here largely depends on what happens next with inflation. If inflation does truly begin to cool, mortgage rates may come down as a result. When that happens, expect more buyers to jump back into the market. For you, that means you’ll once again face more competition. Buying your housz now before more buyers reenter the market could help you get one step ahead. As Lawrence Yun, Chief Economist for NAR, says: “The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
When mortgage rates come down, those waiting on the sidelines will jump back in. Your advantage is getting in before they do.
Bottom Line If you’re thinking about buying a housz, you should seriously consider the advantages today’s market offers. Let’s connect so you can make the dream of houszownership a reality.