Buying a home in any market, at any time is a very personal decision. The best way to make that decision is by educating yourself on the facts, working with a trusted professional, and not following the sensationalized headlines in the news daily. My team and I only deal in facts and bring an educational approach to this process. In reality, headlines do more to scare people than help people who are ready to buy a home. As they say in the news: “If It Bleeds, It Leads!”
Here are two BIG reasons why the current market is still a good time to buy:
- Home Prices Won’t Crash
Home prices will continue to moderate at various levels depending on the local market and factors such as supply and demand, but leading experts agree that they do not believe a crash is coming like what we saw in 2008. So if you are holding off on buying because you are worried about a crash, rest assured that is not what the experts are projecting. Keep in mind that there is no rule that says another Great Recession is inevitable. In fact, history has taught us that an economic failure like that is a once-in-a-generation event.
- What Goes Up, Must Come Down
The best kept secret of the media in the past four months is this: In 2022 until Thanksgiving, interest rates rose the fastest they ever have. Since then, they’ve dropped the fastest ever! The FED rate you hear about on TV is not the mortgage rate as it is somewhat independent. Many in the industry think if they enter the lower 5s or upper 4s, we will revert back to the manic environment we saw these past few years. That means you’ll once again face steep competition and bidding wars. It would be a huge advantage for you to be a step ahead of them. Believe it or not, that’s more opportunity for buyers now to start building equity in a home instead of paying their landlord’s mortgage.
The bottom line is that you can’t sit around and wait for a unicorn of low mortgage rates and ample inventory. If you do, odds are there will be other factors preventing you from buying a home. You want to start putting things in motion now, and start making moves so you stay a step ahead of all the people waiting and watching from the sidelines.