The Benefits of Buying a Home in Today’s Market
It's no secret that interest rates have increased, but this shift in the market has created some major opportunities for buyers. Don't let the fear of an interest rate scare you before thinking critically about the full picture of the market. Now could be a great time to secure your next home, let's dive in!
In the past 6-12 months interest rates were historically low, which was a major factor in the intense buyer frenzy of the time. Many buyers included huge escalations in their offers, sometimes hundreds of thousands of dollars over the listed price, with the average sale price being 10-15% over the listed price. To get their offers accepted in an extreme seller's market, buyers wrote super-competitive offers, waiving most (if not all) of their contingencies, to stand out among multiple offers. Buyers had to make these decisions quickly, as homes averaged less than a week on market.
Today, the market is much more buyer-friendly. Our clients have been able to take their time with their search, with the average home staying on the market for 20+ days. We've seen plenty of opportunities for buyers to negotiate homes below the listed price, and have the seller buy down the buyer's interest rate through closing costs. With less competition from competing offers, many buyers have been able to include important contingencies to their offers, leaving them more protected throughout the transaction.
If you've halted your search, or are waiting for rates to come down, you might find yourself buying in another competitive market with the return of escalations and waived contingencies. And if home prices rise before rates fall, waiting might wind up costing you $$$.
Our advice: Secure your home sooner rather than later, and start building equity. Then refinance your loan when interest rates drop again.
Ultimately, it's important to make a move when the time is right for you. But there are so many upsides to buying in today's market that interest rates shouldn't hold you back from your next chapter. Reach out to us today so we can begin to strategize how to make this market work for your unique situation.
