The real estate market has rapidly changed in a short amount of time. There are many buyers who have exited the market due to the high-interest rates. Homes have started to sit a little longer, but home prices have only dropped if any by a small percentage in most markets. This doesn’t necessarily mean it’s the wrong time to purchase for everyone. In fact, as competition is being reduced now, it is a great time to buy. Now you can take your time looking and sellers are actually allowing inspections, appraisal contingency, and giving concessions.
The type of buyer that should be buying right now, is a buyer that has a NEED to buy. Whether it be a job relocation, downsizing, upsizing, or moving closer to family. And of course, it helps if you have a good stable income and job that can actually still afford to pay a mortgage even at these higher interest rates. Because you need to think long-term when buying a home.
Long-term in terms of the home’s value, as well as interest rates. Historically real estate rises in the long term. Also, rates fluctuate over time, and hopefully, within the next couple of years here, interest rates fall back down. And you as a buyer can refinance at lower interest rates when that happens.
So unless you’re like a real estate investor that’s sitting on piles of cash or you don’t even care what the interest rates are to buy. Then, now is the time to buy! Because a lot of buyers have fear in their minds right now in the market and they’re running out of the market. Meaning sellers will probably get desperate and opportunities will present themselves. Those who are prepared and willing to keep looking may just find the best opportunities.