If you’ve been sitting on the sidelines, waiting for the perfect time to buy a home, you might be surprised to learn that right now is actually an ideal time for buyers. Here are three reasons why now is a great time to take the plunge into homeownership.
More Buyer Incentives
We can’t dispute that mortgage rates have risen substantially this year. The average rate for a 30-year fixed mortgage was about 3% in January of 2022, but currently sits around 7%. But here is the good news, lenders and sellers are now forced to offer incentives and negotiate. Many lenders are offering mortgage buy downs, a way for a borrower to obtain a lower interest rate by paying discount points at closing. In some instances, a homes current mortgage may be assumable allowing buyers to take on the original loan balance at the original terms. Sellers also may be more inclined to cover closing costs or other fees associated with the sale of their home.
Home Prices are Falling
Housing prices have begun to fall after soaring during the pandemic. Economists at Goldman Sachs expect home prices to decline by around 5% to 10% from the peak hit in June. This is a relief for many people who were worried about being priced out of the market. However, it is still unclear how long this trend will continue. Wells Fargo has recently forecasted that national median single-family home prices will drop by 5.5% year-over-year by the end of 2023. This means that there is still some time before prices return to pre-pandemic levels. In the meantime, it is a good time to buy if you are in the market for a new home.
There’s More Inventory Available
According to the Texas Real Estate Research Center, housing inventory in Texas is growing, offering buyers more selection. Active listings grew approximately 30 percent quarter-over-quarter to a seasonally adjusted rate of 85,600 units.. This is good news for those in the market for a home in Texas, as they will now have more options to choose from. If you’re thinking of buying a home in Texas, now might be a good time to start your search!
Now might be the most ideal time to buy a home thanks to buyer incentives being offered to offset Mortgage rates, falling prices, and increased housing inventory levels. So, if you’ve been waiting for the perfect time to buy, there’s no need to wait any longer—the time is now! Connect with one of our agents to get started.