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We’ve been receiving feedback from numerous buyers who are holding out for a market crash, a market correction, or a decrease in interest rates. But let’s take a closer look at the actual situation.
Many individuals are in a waiting mode, anticipating a market crash or hoping for interest rates to decrease. However, we’d like to share our perspective, one that resonates with most professionals in our industry.
The current reality is that we are grappling with a housing shortage. The demand for homes far outweighs the available supply. As for interest rates, the likelihood of them reverting to the previously observed 2.5% range is slim; those days are in the past.
So, what’s the present scenario? With the prevailing higher interest rates, buyers possess a degree of leverage. This translates to an advantageous position, enabling them to enter homes of their liking while also having some room for negotiation with sellers.
This newfound advantage is particularly significant due to the reduced competition. However, it’s essential to bear in mind that once interest rates do eventually drop—and we believe they will, possibly reaching 5% or even 4%—the market will be inundated with eager buyers.
You are going to be in so much competition, you will not be able to afford the home that you can afford today. If you can afford to buy the home that you want to be in, buy it now and refinance when those rates drop to avoid competition.
If you have questions about this topic or anything else, please call or email us. We’d love to help you get into a new home before competition increases.
