03/30/2023
I remember when the average home price was $135,000 and $300k was considered Luxury๐ณ. Wow have things changed!
A lot of the buzz says prices will fall this year. I think prices will stay and go up ๐at a more moderate pace. In the 3rd quarter after summer some of the higher priced homes may slash prices if they are sitting empty and sellers need to move them after pricing high in the summer market didnโt work. If a home is priced right for the market and itโs condition though it should sell. There is room for negotiation and we are seeing that where we havenโt in a couple years. The hope is as soon as inflation is under control (2%) we will see the fed adjust and rates come down ๐and that I hope is sooner than later. The rate hikes just havenโt been working as fast as the theory of it would have hoped. I pray that change will happen soon. ๐๐๐
People want and need to buy houses but interest rates + costs of goods make it scary and hard. A familyโs budget just isnโt stretching as far. People are staying put but the transplant buyers have to buy or rent. Rent is higher than buying and if youโre in a rental trying to stay put I pray you donโt get high rent increases pricing you out of your home. There isnโt much to go to on the rental market and if you find one that fits the same budget itโs possibly a big downgrade or downsize. With buying it could be the same thing because rates keep you from buying as much house so youโre looking for a home thatโs smaller or a house thatโs not of the same caliber or condition.
Buying is always better no matter what the rate is because you are at least paying toward a home that you own not one that someone else owns. I believe in building your own wealth even if itโs at a higher rate. Remember you are paying a mortgage regardless but with a rental you are paying someone elseโs and building their wealth.
I just hope everything levels out this second quarter but a lot of predictions point toward the last quarter. As long as it costs banks more to borrow money it will cost us more to borrow it too. With that being said itโs still a great time to buy. There is less competition, less outlandish offers expected (appraisal gaps, no inspections) and you may be able to negotiate harder on a home you really love. Cut back on frivolous spending, be disciplined and buy the house you want (without putting yourself in a financial bind of course). Refi when rates drop. ๐ Just my two cents of sense.
If youโre thinking of, wanting or needing to buy, or sell for that matter, call me. I would love to help you navigate the process and make your journey of home ownership a much smoother educated journey. ๐๐ป
๐๐๐๐ข ๐๐จ๐ฆ๐ฆ๐, ๐๐๐๐๐๐๐ยฎ
The Local Market owner/broker
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