Another interest rate hike – and house prices are 36% more than before COVID hit. So should you be looking at buying a home? Absolutely! And I’ll tell you why. Hey there, Jenevieve Croall with JLUX Homes here, back with another housing market tip for you!
Interest rates are currently at the highest levels since early 2008, during the middle of the Global Financial Crisis. With home prices as high as they are right now, many buyers are wondering if they shouldn’t hold off buying until things change.
In short, no, waiting is not the answer. Here are just some of the reasons smart investors are hunting for new properties while everyone else “is waiting and seeing”. Yes, rates are climbing right now, but history – and the experts – show that real estate is still one of the safest investments you can make. Waiting means your interest rate and home price may be even higher. And if the rates do fall in the future to lower levels, you can always refinance your mortgage.
Another reason it’s a great time to buy is because with higher rates comes less competition, not among home inventory but buyers. Many people can’t afford to borrow when home loans cost more, thinning the market and giving you more leverage to negotiate.
And as a result of less people buying, sellers are often willing to drop their prices, looking to offload homes they are struggling to afford to a market with fewer prospects than it had last year. Another recent change for buyers is that The US Credit Bureau no longer considers your medical debt or relevant collections as part of your credit score. Typically, this change adds 22 points to the average person’s credit score. This means that many buyers can snag lower mortgage rates and aim for more expensive homes now.
As a bonus, zero-down options on new homes are surging, becoming a real option for many potential buyers – especially first-timers – and eliminating the need to come up with big down payments. There you have it. So many reasons to stop waiting if you are thinking about buying.
If you or someone you know is planning to buy in the next 12 months, now is a great time to chat.
Give me a shout for a complimentary consultation – I’d love to discuss your buying options in today’s market.