Market Update and Optimism:
In this current market, there are extraordinary challenges to housing. And we know that the media will latch on to everything and anything they possibly can come up with that is negative. We know that significant headwinds face the housing market due to elevated interest rates, high home prices, and continued challenges with limited inventory. Despite all that, we are seeing that there are opportunities that exist to conduct business and for homeowners to afford to purchase.
People are still purchasing homes in this market. When interviewed, more and more buyers today say they’re buying now because they want to take advantage of the potential future home value increases that are likely to occur. Home purchasers now realize, at the advice of their loan professionals, that if they purchase now, they will always be able to refinance down to a lower rate and payment in the coming year or two.
Buying a home right now is certainly a very personal decision for clients, and one that has to be thought out. You should be aware of some things that are happening that the media doesn’t report. The first is that inventory is starting to get higher. Despite inventory creeping up, we are seeing them sell. Some markets move faster than others, and price range also impacts the speed at which homes move into a contract. There is no indication that inventory will explode, so higher home prices are here to stay for the foreseeable future.
A growing trend, however, is that we’re seeing sellers more willing to negotiate. Sellers in the current market are highly motivated. Although they might be sitting with a very low interest rate on their home, if they’re willing to give up that interest rate, they have to be highly motivated to move. For that reason, they are looking to make deals happen, even more so than before, and that, of course, benefits buyers. If the sellers are willing to help with temporary interest rate buy downs or even contribute to closing costs, this makes home purchasing more affordable. These are just a couple of things that are happening right now in the housing market.
Buyers considering purchasing today should consider these factors.
Vaimberg, Ron. “Weekly Newsletter – January 6, 2023.” Ron Vaimberg International, Ron Vaimberg, 6 Jan. 2023, https://rvionline.thinkific.com/courses/take/rvi-weekly-newsletter/texts/41523497-weekly-newsletter-january-6-2023.