Why Home Buyers Shouldn't Wait

Zillow just shared a great article diving into the facts and future of housing affordability. Yes, interest rates are high, but 1. what if they go up? and 2. refinance is always an option when they come back down.

There are big opportunities for Buyers jumping in right now - for the first time in years Buyers are negotiating on price, inspection repairs, and have the opportunity for Seller credits towards closing costs and rate buy downs.

If you are waiting for the market to crash, take a look at the facts below.

Fewer new listings are coming to the market. Why? Homeowners feel 'locked in' at their current homes. With mortgage rates at a 20 year high, 90% of current mortgages have less than 6% interest rates. Some Sellers would like to move up but are priced out, those who could downsize are realizing that their house at 3.5% may have a lower monthly mortgage than even a smaller house at 6.5%.

More Buyers are entering the market. Over the next four years we'll see the largest portion of our population go through 'peak first time home buying' season. Already in 2022, the percent of First Time Home Buyers has increased by 8% compared to last year. Thanks to the softening of the market, first timers are no longer competing with cash offers over asking, large down payments, and seasoned buyers.

What is the true cost of waiting to buy? 78% - yes, almost ALL prospective buyers told Zillow in a recent survey that they would ramp up their home search if interest rates dropped below 4.5%. IF that were to happen, do you want to compete with them in multiple offer situations (again)?

Top housing economists and experts project 2-4% growth in housing prices each year through 2026. What if housing prices don’t crash? How much is rent costing you while waiting for the ‘right’ home buying conditions? How much equity are you missing out on by not investing in real estate today?

Questions? Let's talk more!

[Click each graph above for source and details]

As always, thanks for being here!

- Lindsey