By: Sally Heldman, Broker Owner
"Should I buy now, or wait until 2024?" That is the question that buyers are struggling to answer in today’s housing market. We've been in a crazy hot Seller's market for a long time (10+ years), and then the pandemic cause prices to skyrocket even more as people fled the cities to more desirable places. Super low interest rates caused even greater demand that resulted in "CRAZY feeding frenzy" market conditions in 2020 to early 2021.
But now, thanks to inflation and the Fed's attempt to tame it, we've seen mortgage interest rates soar to 22 year highs! Why can't buyers catch a break?!
While it may be tempting to put the home search on hold right now, here are some things for Buyers to think about:
1. Inventory -- The number of homes for sale is slowly coming back to pre-pandemic levels. As supply goes up, demand goes down. And with less demand we are seeing prices level off, and in many areas, dropping slightly.
2. Days on Market is UP -- which gives Buyers more time to look at homes, or even go back for a second or third showing before making a decision. No more bidding wars or rushing to get your offer in within the first few days on market. Homes are now taking weeks or even months go go under contract instead of hours or days.
3. Motivated Sellers -- The sellers who are listing their homes now likely HAVE to sell for one reason or another. They need to sell and will often consider buyer incentives such as seller paid closing costs so that Buyers can do "rate buy down".
4. Rates are what they are. If you're waiting for them to go down to 3% again, you're going to be waiting for a long time. If you buy now, and rates go up, you WIN! If you buy now and rates go down, then you also WIN (and you then simply REFI)! This is why we've been starting to use the phrase "Marry the House, but Date the Rate".
5. Build Equity -- Over the long term, real estate has always been a great investment. Why not put your monthly rent check back into YOUR pocket?! Regardless of what the market is doing, buying now means you start building equity immediately.
If you're on the fence about buying a home in this market, please do not hesitate to reach out so we can discuss your situation.
Sally Heldman
Broker Owner
Metro Brokers / Heldman Real Estate
303.475.4508 CELL
sally@sallyheldman.com