Beyond a Seller's Market - Why You May Want to Make Your Move Now
September 8, 2022
While the past couple of years have been a seller’s market for real estate, the financial experts have weighed in and all are in agreement that the market is finally leveling off and making a turn back toward “normal.” Here are reasons you may want to make a move now…
Less Competition for Real Estate Inventory
This is good news for those who have wanted, but who have held off on making a move as of yet. While current 30-year fixed mortgage interest rates hover in the 6.2-7.1% range, this is still a decent interest rate compared to the close to 20% interest rates seen in the early ‘80s. The higher rate has helped slow down the number of loans in play, and that means fewer people looking to buy and less competition for available housing inventory.
Better Deals for Buyers
This lower amount of competition then translates into better deals for buyers. The days of having to forego inspections and submit a bid $20k over list price to even be considered are over. Buyers can now take their time to look for the perfect house that meets their family’s needs and can ensure that the property is structurally sound before they buy.
Rent is up 30% over last year in some markets, with the expectation for it to climb another 7% this year. With the leveling off of the home-buying market, it makes sense for those renters who had previously held off looking at buying because of the craziness of the market the last couple of years to now start looking to purchase and lock in a steady home payment.
Expected Increasing Interest Rates
Like anything else, it is hard to predict the future. Based on the data, however, it is likely that interest rates won’t fall anytime soon. Even if the rises in interest rates are small, it will ultimately have a knock-on effect for the mortgage market. Mortgage interest rates are expected to reach 8.2% by 2025, says the National Association of Realtors. With rates continuing to increase, the time to make a move is now.