02/07/2024
Tyson studied economics and is now doing mortgages. Interesting insight into whether you should wait for rates to drop before buying.
"I will just wait for rates and home prices to drop to buy a house"🏠
How many times have you heard somebody say that in the past couple of years? On the surface that sounds like a great idea, but let's talk through why it might not work out so well...
The chart below shows the appreciation/depreciation ⬆️⬇️ of homes by county in the US 🇺🇸 during 2023. Some regional outliers saw some relatively big moves (Texas & the NE), but for the most part, it was pretty tame and most counties in UT saw a slight increase.
🆗 Why does this matter? 2023 had the highest interest in a long time and even those rates didn't do much to suppress home prices. Sure, the competition wasn't as fierce, but if 8% rates aren't going to budge home prices don't count on a big reduction anytime soon.
So, let's say we accept that home prices won't come down significantly in the near future, why not just wait for rates to drop? With so many buyers waiting in the wings, big rate drops will only push prices higher as competition heats up. Utah still has a strong demand for housing; I put another map in the comments that shows how our population is ripe to be homebuyers now and in the future.
All this to say, now isn't a perfect time to buy a home, but it still might be the best we will have for a while. There are no doubt some rough things about the current market, but let's talk if you have questions. Home buying strategies can be really personal, but waiting might not be ideal.
-Tyson
