There’s a predicament facing potential buyers today. Should they wait until the mortgage and housing markets quiet down or move ahead in this unsettling economic environment?
A better question might be, “As a buyer, what are you waiting to see: mortgage rates to come down, prices to come down, or both?”
Most do believe that mortgage rates will come down in the near future, and you can find more on that here in my 2023 forecast…and there’s a ton of data to support that position.
Home Prices
Regarding home prices, however, most are still forecasting increases in home values. While listing prices may be coming down, sales prices are still rising from the same month a year ago.
The National Association of Realtors (NAR) reported the median sales price for November 2022 was up 3.5% from November 2021. Most expect December’s numbers to be in line.
Lawrence Yun, Chief Economist for NAR at their recent annual conference, forecasts home price appreciation for 2023 at +1% and for 2024 at +5%. So prices aren’t expected to go down.
So what’s a buyer to do? Well, I’d recommend that they marry the house, but date the rate. More on that here…as houses aren’t going to get any cheaper!
And I have another program in place that will help offset some of the refinance costs down the road…it’s called Buy-Fi.
How does Buy-Fi work?
Here are the specifics…
– Apply with The Lending Coach for the purchase of your new home
– Close on that purchase home loan before 4/30/23
– I’ll watch interest rates and when they drop, I’ve got you covered
– Refinance any time before 12/31/24 and I’ll waive your lender fees
Buyers can find out more regarding the specific terms and conditions on Buy-Fi here…
One final thought, owning real estate allows individuals to benefit from inflation on that large asset. The leverage from using borrowed funds to finance the purchase creates leverage that additionally works in favor of the buyer.
And residential real estate generally does extraordinarily well during inflationary/recessionary periods!
Please do reach out to me to find out more, as it would be my pleasure to help you!
