We are currently in the midst of a market that is unlike any market we’ve ever had in my 32+ years in the business.
Although home prices have come down approximately 6% so far this year, the decrease in prices has NOT made up for the increase in interest rates.
I get that many buyers don’t want to buy if the market is going down in value and they’d prefer to wait before making that decision.
Ask yourself this question...
If the interest rates
continue to go up (as the fed says they will) and prices stay the same or do come down even more are you really going to be better off with a lower-priced home
but a much higher mortgage payment
because of the higher interest rate
The answer is NO!
I know we’d like to think “if prices come down so will mortgage payments” but it’s quite the contrary.
If prices drop, it will be because interest rates increase, and right now to get a mortgage payment remotely close to what you would have gotten when the rates were 2.5%, prices would have to drop by 50+% or more which is highly unlikely.
The one thing all the experts do agree on is that the maximum price drop we “maybe” see is 20% on average across the nation. Some areas may experience a higher decrease in value, while others will see less of a decrease.
And, when I say home prices are going down, we have to put this statement into perspective. Nationally, home prices rose 40.6% in just over two years’ time—from March 2020, when the pandemic lockdowns began, to the peak of the market this past June 2022, according to Realtor.com. So a 10%, 15%, or even 20% drop over a two-year span isn’t as significant as it might seem.
If you are thinking of buying DO NOT WAIT because today you’ll actually get a better price and deal on a home than you would have 6 months ago and today your interest rate will most likely be lower than it will be 6 months into the future. The time to take action is NOW! Call me today and let’s put a plan together for you and your family.
Here’s a great article that goes into further detail about today’s market. Enjoy
Read Article Here