The perspective around buying a home has changed. Now, people are not merely buying homes to get a personal abode; they are looking for other attractive benefits. The allure of such benefits is leading them to look past the rising mortgage rates.
That said, buying a home is not a decision that must be taken lightly. It takes a hefty investment into your future when you buy a house, which makes it important that you look at unbiased facts moving forward, not just go by the headlines from mainstream news designed to create fear, uncertainty, and doubt among buyers.
That brings us to today’s article. Read to know the three main reasons why if you’re on the fence about buying a home, you should take a plunge as soon as possible.
1. There are more homes on sale right now
The National Association of Realtors has revealed that the number of homes available to buy has increased since the start of this year.
Two reasons contributed to this:
- Most people are listing their homes for sale because their value appreciation rate is higher than last year.
- Buyers are waiting for the mortgage rate increase to subside before investing.
These two factors have caused the availability of more homes on the listing sites. And because of the mortgage rates, real estate is a buyer’s market. And with less competition around, you’re likely to find homes at a competitive price.
2. Current Market Conditions Don’s Show the Real Estate Market Crash
Certain news articles have created a scenario of pseudo-fear, with many people believing that the real estate bubble burst of 2008 will repeat. But home prices will moderate depending on the local market conditions like supply and demand. That means while there is a tug of war between experts, with many calling for slight appreciation on the one hand and slight depreciation on the other, as far as the bigger picture is considered, 2023 paints a neutral price appreciation graph next year.
So, don’t worry that after buying a home, the prices will crash like in 2008; the projects are in the neutral zones with this one.
3. Mortgage Rates are Likely to Come Down Next Year
Right now, the rate on home loans is subject to the tug of war between the rising inflation and the Fed’s attempt to curb the inflation. If inflation starts to slow down, the Fed’s approach to increasing the interest rate shall decrease, which will positively impact the mortgage rates.
Preston Caldwell, Head of US economics for Morningstar Research Services, has a very optimistic view about the inflation rate. He believes that Fed tightening will cool off since the primary drivers of inflation, cars, and energy will cool off next year as the issues, such as supply chain snag due to the Russia-Ukraine conflict, subside.
If that comes to pass, the Fed will slow down the interest increase, giving banks some reprieve who will – hopefully – be willing to lower the mortgage rates next year. The lower mortgage rate will likely create a seller’s market, which makes now a good time to invest in a home while the buyer’s market is still hot.
Thinking about buying a home? Explore the benefits that come with it first. Reach out to the real estate professional near you before you decide on your next move.
