Marry the House and Date the Rate
There is a lot to be said about today’s real estate market. Home prices have fallen by approximately 12 percent, and there's more inventory, but mortgage rates remain high. So as a buyer, how do you determine your buying power?
Home shoppers often ask me, what should I do in today’s market? Should I wait to buy or take advantage of the lower prices and more inventory despite higher mortgage rates? My answer is: If you can financially take advantage of this market, then YES, you should buy now and here’s why.
In today’s market, buyers have all the leverage to negotiate with sellers. Most homes on the market today are sellers who NEED to sell, not just looking to see what price they can get for their home. This means they may be more willing to offer more concessions like closing cost credits, rate buy-downs, or repair costs. Keep in mind that, even though rates are higher, the homes that are priced properly are still getting a good amount of interest from several buyers, often at the same time. So, if you are in need of some help from the seller, be prepared to make a forthright and reasonable offer.
Another important consideration is that sellers are no longer asking buyers to remove ALL of their contingencies with an offer like we have seen in the last couple of years. Combining all this together gives a buyer more power and leverage to purchase a home and can outweigh the costs of higher mortgage rates. In fact, right now with creative financing options it can actually be more affordable to purchase a home than it has been in the past few years. Also, after purchasing, buyers can always look into refinancing when rates eventually come down.
Of course, it is best to consult your trusted real estate agent to discuss what is happening in your local market area.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2023 real estate forecast, don't hesitate to reach out - we're happy to help!