Key Advantages of Buying a Home Today
There is no doubt that buying a home now is different from it was a few years ago, and the market change has given buyers today advantages. For people who have considered buying but have put off their search owing to rising mortgage rates, there are special factors at the moment that make this house market attractive.
The best way to decide whether to purchase a home in any market is to educate yourself on the facts, not to follow spectacular headlines in the news today. The truth is that headlines tend to scare off potential house buyers more than they tend to explain the current status of the real estate market.
Here are three arguments in favor of homebuyers making a decision now.
1. More Homes Are for Sale Right Now
The number of properties for sale this year has increased dramatically in comparison to where it was at the beginning of the year, according to data from the National Association of Realtors (NAR) (see graph below):
Homes being on the market a little bit longer as demand has slowed down in reaction to increasing mortgage rates are two factors that have contributed to this growth.
You have more options since there is more inventory, which is fantastic news for you. Additionally, if there are more homes available, there may be less competition from other buyers as the peak frenzy of bidding wars for the same property has subsided..
2. There is no anticipated decline in home prices.
Home prices won't plummet like they did in 2008, according to experts. Instead, based on the local market and the dynamics like supply and demand at play there, housing prices will moderate at different levels. Because of this, some experts are recommending a minor appreciation while others are recommending a slight depreciation (see the graph below):
The estimate for price appreciation next year is expected to be pretty level or neutral if you look at the broad picture and average the professional predictions for 2023. Therefore, rest assured that professional predictions do not indicate that home values will plummet like they did in 2008 if you are anxious about buying a property because of this fear.
3. Mortgage interest rates have increased, but they will decline.
While mortgage rates have increased quickly this year, the rate of growth has slowed down recently as early indications suggest that inflation may be gradually slowing. What happens to inflation next will determine where they go from here in significant part. Mortgage rates might decrease as a result if inflation really starts to slow down.
When that occurs, additional buyers should return to the market. That will result in increased competition for you. Purchasing a home today, before more buyers return to the market, may put you one step ahead. According to NAR Chief Economist Lawrence Yun:
“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 who have been holding out will return when mortgage rates decline. Getting in before they do will work to your benefit.
To sum up
If you're considering purchasing a property, you should carefully weigh the benefits the current market has to offer. Let’s connect so you can make the dream of homeownership a reality.