Is now the time to buy a house or wait?
I hope that you had a good summer, but now the school bells are ringing again, summer vacations are in the books, the days are getting shorter, rush hour traffic is back, and home buying "season" is over. Wait! Home buying "season"? Shouldn't a Realtor say "It's always a great time to be in the market?"
Well, I'm glad that you asked! There is most certainly seasonality in the residential market (as can be seen from the chart), but there is always a housing market. So, let's look at today's market to get us the pros and cons of our current market!
Pro: Our inventory has risen faster than the demand for homes. This spring we were short on inventory, today we have way more inventory. More supply means that our market has shifted in the buyer's favor! You have more choices of homes and may be able to to get a better deal.
Pro: Interest rates are holding steady. Many had predicted that interest rates would rise above 5% on a 30-year mortgage by now, but we have been holding steady between 4.5% and 4.75%. You may remember a couple of years ago we were at 3.25%-3.5%, but even 4.5% is much cheaper than historical rates.
Con: We have already started to see inventory levels fall a bit since the end of July, but not enough to shift the market in the seller's favor. This means the longer we wait though you will have fewer housing options. We are just below the peak, but the "good ones" may already be taken.
Really it comes down to when is the best time for you and your family to move. Did you get a new job on the other side of town? It might be time to move closer. Your kids don't like their school? Maybe move to a different district. Or, maybe you are just tired of your old house and want something new? No matter the reason, the housing market will always be cyclical. As inventory drops so do the number of buyers. The chart shows that inventory lags closed sales by a month or two, but it will equal out.
If you have any questions just give us a call at 692-0663!