Is now the right time to buy a home?

Sep 16, 2023 | Ask the Realtor

If you’re in the market for a new home, you might be wondering whether now is the right time to make your move. With the real estate landscape constantly evolving, it’s essential to consider various factors before making this important decision. Every market is different because real estate is local. Let’s explore some valuable insights on the current market conditions.

In this fast-paced and competitive market, one of the key factors to consider is inventory. Right now, there is limited supply, which means buyers may face some stiff competition.  According to statistics from the Rim of the World Association of Realtors MLS, today’s home inventory numbers are well below what was available in the six months prior to the pandemic.   During the pandemic we were used to seeing homes in short supply, and experienced multiple offers within hours of a home being listed for sale. While we are seeing more homes come on market, and days on market lengthen, this is a return to normal market conditions. There are still opportunities for motivated buyers whose real estate agent understands which inventory pockets represent a more balanced market.

Interest rates are another crucial aspect. Currently, interest rates are higher compared to the pandemic years. This means that financing a home purchase may come with slightly higher costs. However, it’s worth noting that rates are still historically low overall and are actually on par with pre-pandemic times. By working with a knowledgeable lender and exploring different financing options, you can find a solution that aligns with your financial goals.  A local real estate agent who understands how to frame an offer to be competitive and appealing to a seller by using all financing tools available can also help you make the best offer that fits your needs as well as long-term housing goals.

What about timing? While it’s impossible to predict the future of the housing market with certainty, waiting for prices to drop significantly could be risky. Real estate values tend to appreciate over time so, if you find a home that meets your needs and budget, it might be wise not to delay.

This is where the question is really answered: Making a home purchase while interest rates are higher means there is less competition for the inventory that is available, as many potential buyers will shy away from the short-term shock value of interest rates no longer being at 2 percent. The chances of finding a home that fits your physical needs are greater, as are the odds of your offer being accepted.  If you wait for interest rates to go down, you run the risk of more home buyers entering the market and competing with the low supply of homes on market. As those buyers enter into the market, it can strain the already tight home inventory.  That could lead to what most people trying to purchase a home do not want: having to make concessions that could make you uncomfortable, such as waiving contingencies, or participating in the frustration of a bidding war.

So, is now a good time to buy a home? It depends on your unique circumstances and goals. By staying informed, working with a trusted professional, and being prepared to act decisively in this competitive market, you can make an informed decision that aligns with your vision of homeownership.

If you’d like to learn more about the current local market conditions or explore available options, or subscribe to local market statistics that you can follow at your own pace, reach out to Theresa Grant, Real Estate Broker (DRE #01202881) at [email protected] .  You can also follow her on Instagram: @theresagrantrealtor and YouTube: @theresagrantrealtor.


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