If you’ve been on the fence about purchasing a home due to high home prices and interest rates, economists agree there will never be a cheaper time to buy than right now. According to the Federal Housing Finance Agency, between the first quarters of 2022 and 2023, home prices rose in 43 states, and they won’t be taking a dip anytime soon.
Let’s dive into a few reasons why now is the time to make a move.
Interest Rates Are Falling
Interest rates have increased since this time last year, but the good news is they’re starting to decrease slightly. According to Freddie Mac, 30-year fixed rate interest rates are averaging 6.71% for July 2023 and should remain lower throughout the month. While interest rates are higher than we’ve seen, it’s worth seeing what rate you can get now with the unknown of what could come.
Home Prices Will Continue To Rise
We are currently in a seller’s market, meaning there are more buyers than sellers. According to the National Association of REALTORS®, each state averages fewer than 22,000 homes for sale. When the demand for homes exceeds the supply of homes available, home prices will rise. In addition, the average days on the market for June 2023 was 61, an increase of 43 days since June 2022. The higher prices continue to rise – the longer homes will stay on the market.
Start Building Equity
There will never be a wrong time to start planning for your future. Buying a home now means you can start building equity immediately, which can help you with your generational wealth. Purchasing now allows you to potentially avoid additional interest rate increases later, which can affect your monthly budget and result in paying more interest over the life of the loan. Generational wealth not only provides financial stability for you long term, but also security for future generations to come.
Regardless of what you might have heard about the market, you still have power as a buyer! If you have any questions about the current market and whether or not now is the right time to buy, please contact us! We would love to be a resource for you!