Key Advantages of Buying a Home Today
There's no doubt that buying a home today is different than it was a couple of years ago, and the market shift has resulted in advantages for buyers today. Right now, there are specific reasons why this housing market is appealing to those who have considered buying but have put off their search due to rising mortgage rates.
Purchasing a home in any market is a personal decision, and the best way to make that decision is to educate yourself on the facts rather than following sensationalized headlines in today's news. The truth is that headlines do more to frighten people who are thinking about buying a home than they do to clarify what's going on in the real estate market.
Here are three reasons potential homebuyers should consider buying a home today.
1. More Homes Are for Sale Right Now
According to data from the National Association of Realtors (NAR), this year, the supply of homes for sale has grown significantly compared to where we started the year (see graph below):
This increase has occurred due to two factors: homeowners listing their homes for sale and homes remaining on the market for a longer period of time as buyer demand has moderated in response to higher mortgage rates.
The good news is that more inventory means more options for you. When there are more homes on the market, there may be less competition from other buyers because the peak frenzy of competing for the same home has also subsided.
2. Home Prices Are Not Projected To Crash
Experts do not believe that home prices will plummet as they did in 2008. Instead, home prices will moderate at various levels depending on the local market and factors such as supply and demand. As a result, some experts predict a slight appreciation while others predict a slight depreciation (see graph below):
When you look at the big picture and average the expert forecasts for 2023, you can expect relatively flat or neutral price growth next year. So, if you're hesitant to buy a home because you're afraid prices will plummet like they did
3. Mortgage Rates Have Risen, but They Will Come Down
While mortgage rates have risen dramatically this year, the rate of increase has slowed in recent weeks as early indications suggest that inflation may be slowing slightly. What happens next with inflation will largely determine where they go from here. If inflation begins to slow, mortgage rates may fall as a result.
When this occurs, expect more buyers to return to the market. That means you'll be up against more competition once more. Purchasing a home now, before more buyers return to the market, may put you one step ahead. According to Lawrence Yun, NAR's Chief Economist:
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
Those who have been on the fence will return when mortgage rates fall. Your advantage is that you can get in before they do.
If you are considering purchasing a home, you should carefully consider the benefits that today's market has to offer. Contacting a local real estate professional may be the best next step in making your dream of homeownership a reality.
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