Are you scared of todays interest rates? I get it. They are higher than we saw in the early 2020’s. But perhaps now is the time that you would love to downsize, or you are busting at the seams and need more space, or you are tired of paying your landlords mortgage (FYI- rent is 100% interest).
Advantages of Buying Now
We saw lower interest rates in previous years and we also saw intense comptition for houses on the market! Competing against 8, 12 or 20 other offers was not unheard of. And to get an accepted offer, buyers were going significantly over ask…. 20-50k over asking was about the average in our area. There are some that were 75-100k over asking. Doing the math, you are better off buying now with a higher interest rate with little or no competition. Down the road when rates drop (and your income/credit/debt is the same or better), you can refinance into a lower interest rate.
Return of Inspections
In the intense market, many buyers were waiving home inspections, however now some are regretting that decision. It is still important to know the condition of the property you are purchasing. This is a huge investment for you!
What About Home Prices?
In PA we have seen a slight increase in the average home price each month this year. We just don’t see a price crash happening, even though some potential buyers have been holding out for it. So if you have a home now that needs sold, the market is still looking strong for you. Appropriately priced homes are selling! If you have a question about your home’s value, reach out to me HERE.
See If Buying Makes Sense
If you want to chat to see if it really does make sense for you to purchase now, let’s talk. Afterall, buying a house is a big commitment and if the time is not right, I will suggest waiting. Here is a great app you can download that has loan calculators, application, and helpful mortgage information.Â