How do you know when is a good time to buy? In the article The Pros and Cons of Waiting Out the Hot Housing Market, it poses the question, are the buyers flooding the market actually ready to buy? Or are they motivated by their fear of missing out?
A few highlights form the article:
- The market was hotter than ever in 2021, and buyers were doing their best to get their hands on what little inventory was left
- Should you also jump in? Or should you wait out this hot market in the hopes it will eventually calm down?
- A huge driving force for those who are motivated to buy is in direct correlation to the Feds raising interest rates
- The buyers who are jumping in due to “FOMO” may not realize that jumping into a deal may be more of a headache than it’s worth
- Home valuations increase at a faster rate than actual home prices do, which is favorable to buyers
- Despite interest rates increasing and there being a lack of inventory, this does not mean the market is decreasing
What To Do?
While the market has started to stabilize, we are still seeing interest rates increase and inventory remain well below its demand. What does this mean for buyers? We believe it is wise to take advantage of this interest rate percentage while it lasts!
Like the article states “Despite these slight increases in interest rates, and decreases in inventory, this doesn’t necessarily mean the market is trending down”. While most consider this to be a seller’s market we see it stabilizing for our buyers.
Buyers who hold off in the hopes of the market coming down, put themselves at risk of getting stuck in their rental agreements which are at an all-time high. If agents on our team are taking the opportunity to buy investments before rates rise, then why aren’t you?
