There’s no doubt buying a home 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. But, right now, specific reasons make this housing market attractive for those who’ve thought about buying but have sidelined their search due to rising mortgage rates.
Buying a home in any market is a personal decision. The best way to make that decision is to educate yourself on the facts, not follow sensationalized headlines in the news today. Unfortunately, in reality, headlines do more to terrify people thinking about buying a home than they do to clarify what’s happening with real estate.
Here are three reasons potential homebuyers should consider buying a home today.
1. More Homes Are for Sale Right Now
According to data from the National Association of Realtors (NAR), this year, the supply of homes for sale has grown significantly compared to where we started the year (see graph below):
This growth has happened for two reasons: homeowners listing their homes for sale and homes staying on the market a bit longer as buyer demand has moderated in response to higher mortgage rates.
The good news is that more inventory means more homes to choose from. And when more homes are on the market, you could also see less competition from other buyers because the peak frenzy of competing over the same house has eased too.
2. Home Prices Are Not Projected To Crash
Experts don’t believe home prices will crash as they did in 2008. Instead, home prices will moderate at various levels depending on the local market and the factors, like supply and demand, in that area. That’s why some experts are calling for slight appreciation, and others are calling for little depreciation (see graph below):
Considering the big picture and average expert forecasts for 2023, the expectation is for a relatively flat or neutral price appreciation next year. So, if you’re worried about buying a home because you’re afraid home prices will crash as 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 genuinely 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. However, buying your house 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.”
Those waiting on the sidelines will jump back in when mortgage rates come down. Your advantage is getting in before they do.
If you’re thinking about buying a home, you should seriously consider the advantages today’s market offers. Let’s connect so you can make the dream of homeownership a reality.