Is buying a house as bad as it is now?
From fierce bidding wars and skyrocketing house prices to rising and rising inflation mortgage interest rate — Homebuyers have faced an uphill battle over the past two years.
On the surface, today’s homebuying landscape still looks daunting.but they also Creating useful dynamics for borrowers. The decline in affordability has significantly reduced competition, made sellers bargain more aggressively, and given some leverage to buyers.
three-quarters of house hunters I think it’s a bad time to buy Despite these improvements. But experts tend to disagree. Here’s why industry experts still recommend buying in today’s market.
How do homebuyers feel?
Since 2020, borrowers have been ringing. Interest rates plummeted, the housing market exploded, and property prices soared. Mortgage rates are now at their highest in 20 years, slowing demand and home price growth.
All of these factors made buying a home expensive. As a result, buyer sentiment continues to decline. According to Fannie Mae, in September, only 19% of her surveyed borrowers thought now was a good time to buy. That share has fallen for her seventh month in a row, down from 28% for her in September 2021 and 54% for her in September 2020.
“Supply is limited, and rising home prices and mortgage rates are constraining affordability pressures for potential home buyers,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. We expect home sales to remain sluggish as long as this continues.
A possible reason for the decrease is Interest rate forecast adverse economic conditions such as Historically high inflation this year64% of those surveyed believe mortgage rates will rise in the next 12 months, compared with 51% and 38% respectively in the previous two years.
Why experts think now is a good time to buy a home
In reality, the current housing market can be the opposite of what you think. Things may be tough for buyers, but those who are moving forward are finding less competition and more docile sellers. Home price growth slows.
“I have [much] Today, with less competition from other homebuyers and investors than just a few months ago, home prices fell slightly last quarter, prompting home sellers to likely negotiate terms more aggressively. It is ”
– Rick Sharga, EVP of Market Intelligence, Attom Data Solutions
We asked four housing industry experts for their thoughts on the current market. Buyer issues are certainly many, but the situation is more optimistic than most borrowers believe. Here’s what they had to say:
Nadia EvangelouSenior Economist and Forecast Director, National Association of Realtors
“Mortgage rates have risen significantly over the past year, but it’s still a good time to buy a home. There are fewer offers for , which means sellers are likely to negotiate more aggressively.
In addition, data shows that sellers are also willing to lower prices. On average, for properties that were recently sold and he had been on the market for more than a month, sellers had to cut prices by 12%.
Finally, more homes are selling because they’ve been on the market for longer… For example, a buyer earning $100,000 could buy a home when interest rates were close to 3% in January. This is an increase of about 80,000 compared to . “
selma heppDeputy Chief Economist, CoreLogic
“The steady decline in homebuyer demand may help potential homebuyers who faced stiff competition earlier this year. As a result, buyers have more bargaining power when making offers may have.”
Odeta skewersDeputy Chief Economist, First American
“Mortgage interest rates have risen significantly compared to a year ago, but the housing market is significantly less competitive for potential buyers. For those who find a home that fits both their needs and budget, buying a home may be attractive and financially wise.
But for potential homebuyers who are below the price of their desired home in today’s market, it may be worth the wait. can save you down payment and closing costs. “
“For potential homebuyers who are below the price of their desired home in today’s market, it may be worth the wait.”
– Odeta Kushi, Deputy Chief Economist, First American
Rick ShargaEVP, Market Intelligence, Attom Data Solutions
“It’s a difficult time to buy a home today, especially for first-time buyers. Homes for sale have remained historically low, so there aren’t many to choose from, and rising interest rates put many future Affordability has become a real issue for buyers of
That said, there is far less competition from other homebuyers and investors today than there was just a few months ago, with home prices falling slightly in the last quarter and home sellers likely on more terms. Aggressive in negotiations. So for those who find a home they like, it’s not a bad time to buy.
Should I buy now or wait
So should you try buy a house now or waitExperts say it’s not a bad time to buy a home as long as you can afford it.?
The surge in mortgage rates this year may be disappointing, but you can always refinance when rates hit a downward cycle. The sooner you get a mortgage and buy a house, Start building your equity.
If you’re still unsure whether to pursue homeownership or stay on the sidelines, talk to a local lender today. It’s helpful.
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