It is a Buyer’s Market. What does that mean?
I have heard this sentence many times in the last few months: “I really want to buy a home, but I think I should wait until interest rates come down.”
The short response is NO – you should not wait, and here is why. We are now in a buyer’s market. What does that mean?
- Less competition for properties: In the early 2020s, when interest rates were low, many homes received 10 or more offers, creating bidding wars. Now, many of our clients are not competing with any other offers.
- Increased inventory: There are more properties on the market than there are available buyers. This especially applies to condos.
- Better negotiating power: I am seeing sellers pay closing costs, reduce prices, allow contingencies for home inspections, appraisals, and financing. We never saw any of that in 2020 or 2021.
You have probably heard me say, “You date the rate, but marry the price.” At some point, rates will come down, and you can then refinance to lower your interest rate. But the price that you pay for the home never changes. If you overpaid because of a seller’s market, you are stuck with that as long as you own the home.
If you, a friend, or a family member is thinking about dipping a toe into the real estate market, please contact us. We are always happy to run numbers, and there is no fee for our time. Also consider attending our Homebuying 101 seminar on June 1 from 6 to 7 pm on Zoom. Click here for more information or to RSVP.
