Some Common Questions being Asked in Today's Market

What will happen with home prices?
If you’re currently toying with the idea of purchasing a
home, you’ve probably wondered at some point if home prices and/or home equity will
decrease. While we can’t fully forecast the future, we can do our best to
provide you with a well-rounded opinion based on data and what the experts are
saying.
It IS still a seller’s market. Why? Because prices are
driven by supply and demand and there is still a relatively low supply of homes
on the market. This is good news for you if you are considering selling your
home because you are more likely to receive your asking price. This in return
will provide you with equity to put toward your brand-new home!
What’s going to happen with mortgage rates?
This year’s housing market has been defined by rapidly
rising mortgage rates. They have more than doubled in less than a year which is
something we haven’t seen before.
To better understand what this means, the average monthly
mortgage payment is about $1,000 more than it was a year ago. Why is that? The
answer is inflation. To best predict what’s going to happen with rates is to
keep a close eye on inflation.
“If inflation continues to decelerate over the next several
months, mortgage rates will likely stabilize below 7%. Thus, rates will be in
the 6%-7% range in December. That’s still double the previous year’s rate, but
it’s better than an 8% rate, which is the historical average for the 30-year
fixed mortgage. The monthly mortgage payment decreases by $250 when the rate
drops by one percentage point.” - Nadia Evangelou, senior economist &
director of forecasting at the National Association of Realtors
Is Now a good time to buy a home?
It’s important not to ask the question, “is now a good time
to buy?” But rather, “is now a good time to buy for ME?” If you’re a first-time
homebuyer, the biggest factor to consider is rising rent costs.
Homeownership presents the opportunity for a stable monthly payment as well as
the ability to build wealth and make a financial investment. If offers security
and a sense of accomplishment that renting cannot.
The next biggest piece that will help you determine whether
now is a good time or not to buy for YOU is that life happens! Personal
situations change, jobs change, and family dynamics change. Remember why you are
looking for a new home in the first place. Discover your WHY. Do you need a
remote workspace? Is it time to upgrade your small kitchen? Do you simply need
more space? If you can relate to these questions, it may be time to look into
your options!
“If you can find a house that meets your financial
expectations for a monthly payment and it is a good time for you to buy, then
do that…And if you wait for prices to fall and they never do, you may discover
the hard way that the house you found a year ago that you really loved, that you
could afford but you passed on, is more expensive next year,” Odessa Kushi,
deputy chief economist of First American
Sources: Keeping Current Matters