There’s a lot happening in real estate this season. Though the holidays usually signal a slow season, there have been enough changes to keep things bustling! From the outside, it can seem confusing. How many homes are available? Does it make sense to purchase a home when rates are so high? How long should you wait before jumping into home ownership given the current climate? Today, we’re diving into some of these questions.
Take History Into Account
People are talking about high mortgage rates. For a time, they rose to 8% before settling back down to around 7.5%. Given the fact that rates dipped well below 3% in the recent past, that seems incredibly high. However, history tells a different story. Stability around 7% historically reflects the norm rather than the exception. The reason for recent drops include the 2008 recession and the pandemic.
Incomes Are Rising
Despite seemingly chilly rates compared to recent years, incomes are finally rising relative to inflation. This means that houses are becoming more affordable. In addition, houses are selling quickly – taking just 16 days to move from listing to pending sale. That’s twice as fast as the pre-pandemic level. All that demand isn’t being met with supply – but builders will step in to fill the gap if it persists.
Get Educated on Finances
Though many people are making decisions based on hearsay and rumors, it’s important to make sure that you stay educated on the facts of homeownership. Talk with an agent or a broker to understand exactly what it takes to get pre-approved, and how much money you’ll need for a down payment. Don’t rely on what your sister’s cousin told you.
Homebuying is Optimistic
In summary – real estate is looking up. Though there’s still plenty of economic uncertainty, there are also plenty of positives to look to. If you’re ready to purchase a home, be sure to speak to experts in the field to help guide your next steps. We’d love to connect with you at Cresleigh Homes!