It’s Happening, the Market Shift is Here!
What a strange turn of events, for the real estate market. Within a matter of less than a year, there have been rapid major changes. About a year ago rates were 3% and buyers were out there in droves, throwing out offers of $50K, $100K over, and waiving all contingencies. This caused some buyers to say to themselves “You know what? I don’t want to be in this market. I don’t want to do what it’s needed to get into a home. Even though rates are super low. I’m just going to wait.”
And now, those same buyers are back in the market because they still need to buy a home. Of course, rates have shot up through the roof to the tune of 7% as of now. Reducing many buyers’ home purchasing power and home affordability. And they’re asking themselves the same question again. “Do I want to be in this real estate market?”
And the obvious answer is “You should have bought, about a year ago. And did what was needed to buy then.” However, fear not! All is not lost. If you’re still in the market for a home, a majority of buyers are running away from the market in fear. That means you have a great opportunity to negotiate a great deal on a home right now. The power is shifting quickly from sellers to buyers. Sellers are no doubt feeling the pressure as their homes sit longer and even after price cuts. So, even though you can’t buy at a super low rate any longer, this is the best market to actually land a great deal on a new home. As long as you can afford the mortgage payments and you’re financially strong as well as have good jobs. Buy now at a deep discount, hold on to that home for 2+ years, and when interest rates come back down. You simply refinance your loan to the lower interest rate. So now you have both purchased the home for a deep discount and secured a favorable interest rate. There are actually still a few ways you can secure lower interest rates, stay tuned for those posts coming soon.