We have seen interest rates rising over the past three years which of course can lead to some questions and probably some concerns as a potential Buyer. Is now a bad time to buy a home? Will these increased rates cause an eventual crash that I should wait for before buying? Will I be able to afford a better home if the rates eventually come down? We are so glad you asked!

            When rates are going up like they have been, there are less buyers in the market because of the uncertainty, the anticipation for future lower rates and the decrease in affordability. This means there is less competition and less likelihood of being outbid by another buyer. If it seemed impossible to “win” a home in 2020-2022, now is your best shot of having your offer be accepted. If you have a low down payment or are a contingent buyer, now is your time to take advantage of the market while you are less likely to be competing with strong cash buyers. If interest rates drop, a lot of cash buyers will be hungry to buy properties with lower monthly mortgage costs and this increase in competition will quickly bid up housing prices similar to the frenzy we saw just a few years ago. 

            Now is also a time where sellers are considering offers under their listed price because of the lack of Buyers, which increases your chances of finding a deal that will easily appraise. Even with the increase in interest rates, we are not seeing a drastic decrease in pricing, only a steady slowing of how rapidly prices are rising. Although we cannot tell the future, we are confident when saying today is likely the lowest purchase price you will find for a specific home. It is important to note that experts are not predicting another housing market crash because the “bad loans” that caused the crash in 2009 are not present today. Homeowners today are paying for mortgages that they can afford since Lenders have become very strict with the requirements to qualify for a loan. 

            All this being said, our advice when wondering if you should buy right now is to think of the big picture and ask yourself: is this a home I can see myself living in for at least five years? At today’s rate is this something I can afford? Is this “the” home for me, meaning does it check all of my “must have” qualities that I am searching for in a property? Historically speaking, today’s rates are still considered relatively low. We like to use the phrase “marry the house, date the rate” which means if you find the love of your life in a house, do not miss your chance because there is no promise you will find “the one” again. Worst case scenario the rates do not go down, will you look back years from now wishing you had bought today? If the rates do go down, will you wish you had locked in your dream home and simply refinanced with the new rates? It is all about perspective. 

             After 36 years of experience in this ever changing market change, we have developed expert strategies for writing a winning offer and assuring you get the home of your dreams. Please reach out to us any time as we love sharing our advice and watching you thrive!