Navigating the Current Real Estate Landscape: Is Now the Right Time to Buy?

The real estate market is ever-evolving, and potential homebuyers often find themselves at a crossroads. ‘Is now the right time to make a move’? While that decision varies from buyer to buyer, we hope to provide you with the tools to determine if you are ready to buy and succeed in a market that is complex and constantly changing. 

Reasons to Consider Buying Now 

Future Refinancing Opportunities 

Timing is crucial in the world of real estate. RSIR president and CEO Dean Jones likes to emphasize, "date the rate, marry the price". This underscores the importance of securing a dream home at current prices rather than waiting due to a high mortgage rate, the rate can be refinanced later. This applies to both buyers and sellers in any given market. Potential buyers who see a home they love at a price they can afford can date the rate while marrying the price and get a dream home where the rate can be decreased later. Likewise, present owners who are worried about moving on from a lower rate can sell now while prices and rates are both high and then refinance their mortgage once rates return to a more favorable percentage.  

Home Prices on the Rise 

Despite fluctuating mortgage rates home prices are on the rise, this is largely due to inventory shortages. Home prices are up over 4% in our region compared to this time last year, true, but with a large portion of active inventory being represented by homes lingering on the market for weeks, or even months.  Buyers are empowered to negotiate and receive consolations from sellers who have been waiting patiently. In any case, home prices will most likely rise before falling at all, especially in our area, so prices now may be low compared to what they will be in the late winter or early spring. 

There is a silver lining. High mortgage rates may deter some buyers, which opens the door for those who are ready to make a move. While rates make this a financially daunting market, those ready to jump in will operate in a market with less competition. A buyer right now, despite the low inventory, is much less likely to have to engage in a bidding war with other potential buyers than they were in the 2020 or 2021 pandemic markets. 

Inventory Growth 

Supply and demand indicates that low inventory can also be a driver of price increases. However, that too could soon change. Mortgage rates have declined and more potential sellers are considering becoming active. A surge of new listings could occur in the spring, and if that happens, may lead to price decreases. This could kick off a more competitive market with bidding wars and less negotiating room for buyers. For those who wish to avoid that sort of marketplace, it might be worth considering buying now at a higher list price with a more favorable market 

The Bottom Line 

As always, the question of whether it is the right time to buy is up to the you. There is a myriad of factors that could prevent someone ready to buy from taking the next step. High prices, high mortgage rates, and low inventory are all incredibly important components to take into consideration. Perhaps the best way to address this, and to receive the best possible outcome, is to work with experienced real estate professionals. That is where The Chang Group comes in. We are dedicated to our client's success, and one of the biggest aspects of that dedication is putting our client’s needs first. We want to help you make an informed decision about when is the best time for you to make a move. If you are interested in buying a home in the current market, or in the future, we are here to help you at every step. Reach out to us today to get started!