After a year of historically slow business, my email and phone are getting busy. I even had to work (happily) this weekend because one client went under contract, and another client put in an offer.
Trends in the Homebuying Market
Based on many conversations over the last month with prospective homebuyers, here are my impressions on why the homebuying market is finally showing some life.
- Clients are getting used to mortgage interest rates that start with a 6. After a year of interest rates in the 6 to 7% range, the days of historic low rates of 3% are becoming a distant memory. In addition, there is little or no expectation of rates coming down much lower in the next year.
- More houses are coming on the market. People with 3% mortgages have felt “locked in” by their low rate. But houses get too big, too small, or their owners want to relocate. After waiting a year for rates to come down, clients are feeling like they can’t wait any longer.
- People are feeling more confident about the economy and inflation. When you feel good about your job security and salary, you are more likely to jump into the housing market. This is especially helping my first-time homebuyers.
- There is more clarity regarding working from home and/or going into the office. Most companies now have plans, many of which include at least two days a week in the office. This helps clients decide where they can live and commute to work.
I am very happy to get all your phone calls and emails, so let me know if I can help you or a friend with mortgage questions.