Prospective homebuyers face a dilemma in today's housing market due to soaring home prices and rising mortgage rates. Because of these factors, many have chosen to wait. This has led to a 14 percent decrease in existing home sales over the last couple of years. However, there are signs of potential relief for buyers because of the longer days-on-market periods and double-digit year-over-year price declines. While mortgage rates remain high, experts emphasize the importance of building equity and avoiding potential future rate increases. Ultimately, buying a home now or waiting depends on several different factors including credit score, down payment savings, and long-term commitment to the property to name a few.
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Source: Bankrate - Repost Houter loot 1/11/2023 -
Buy now, or wait? That’s the question prospective homeowners have been struggling to answer in today’s housing market. Home prices skyrocketed throughout the pandemic, and the Federal Reserve’s work to tame inflation has sent mortgage rates soaring, too.
The combination has led many would-be buyers to pick the “wait” side of the equation. The volume of existing home sales was down more than 14 percent from October 2022 to October of this year, according to the National Association of Realtors. And, according to the Fannie Mae Home Purchase Sentiment Index released in early November, an overwhelming 85 percent of consumers believe it’s a bad time to buy a house.
However, after being at a constant disadvantage for the past few years, things have started to look better for buyers in many parts of the country. Days-on-market figures are way up, giving buyers more time to make an informed decision. Popular West Coast cities that had seen skyrocketing prices, like Seattle and San Francisco, saw double-digit year-over-year declines. And in the most recent National Housing Report from RE/MAX, one of the biggest real estate brokerages in the country, CEO Nick Bailey declared that “buyers are gaining a little more leverage.”
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