The Ideal Moment for Homebuyers Is Here: Don’t Miss Out!
After spending months on the sidelines due to high mortgage rates and affordability challenges, many homebuyers now have a window of opportunity to act. With interest rates slowly declining, today's housing market is a prime time for buyers—and it won’t last forever.
So, if you’ve been holding off on purchasing a home, now might be the time to reconsider. Here’s why waiting could mean missing out.
Consider This: What Will Other Buyers Do?
As you think about whether to buy now or wait, ask yourself: what will everyone else do if rates continue to fall?
The truth is, if mortgage rates keep dropping, as many experts predict, more buyers will return to the market. In fact, a Bankrate survey shows that more than half of homeowners would consider buying if rates dip below 6%. With rates already hovering around the low 6% range, we’re getting close. When they fall into the 5s, expect buyer competition to increase. (see graph below):
This rise in demand could lead to higher home prices, potentially wiping out some of the savings you’d gain from a lower interest rate. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), points out:
“The downside of increased demand is that it pushes home prices up as multiple buyers compete for a limited supply of homes. In markets with housing shortages, this price increase can offset the benefits of lower mortgage rates.”
In other words, waiting to buy might seem like a good idea, but it could cost you more if prices rise faster than rates drop.
Why Now Is a Great Time to Buy
You’re in a unique position right now. The market is in a sweet spot for buyers, and here’s why: many buyers are still waiting on the sidelines, which means there’s less competition for you.
Affordability has also improved. With mortgage rates easing, owning a home has become more accessible. As Mike Simonsen, Founder of Altos Research, shares:
“Mortgage payments on a typical home are 7% lower than last year and 13% lower than the peak in May 2024.”
Plus, while inventory is still tight, there are more homes on the market than in recent years. According to Ralph McLaughlin, Senior Economist at Realtor.com:
“The number of homes for sale has increased by 35.8% compared to last year, marking ten consecutive months of growth and reaching the highest levels since May 2020.”
This means more options for you as a buyer, with less competition and improved affordability.
The Cost of Waiting
If you’re holding out for the "perfect" time to buy, remember that timing the market is nearly impossible. The longer you wait, the higher the risk that market conditions could shift against you. Greg McBride, Chief Financial Analyst at Bankrate, warns:
“It’s one of those situations where you should be careful what you wish for. A further drop in mortgage rates could spark a surge in demand, making it harder to buy a home.”
Final Thoughts
Don’t wait until you're facing more competition and rising prices—take advantage of today’s buyer-friendly market. Let’s connect to make sure you’re ready to seize the opportunity.
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