Don’t be spooked by the real estate market, you can still snag a deal!

Prospective home buyers may get spooked easily. After the last few months of rising interest rates, rising prices, and inflation, it’s easy to see why many first-time home buyers might think it’s wise to delay buying a home this year. But, the national average rate for a 30-year fixed home loan dropped below 5% – the sharpest drop since April. Many analysts see this rate drop as the beginning of a normalization of rates after the Federal Reserve interest rate hikes. So if you were scared by the recent interest rate spikes in the past few months, now might be the time to consider jumping back into the market. Here are three reasons that might convince you now is the time to buy.

1. Housing prices are slowing down. The record-high housing prices of the past few years may slowly vanish. Reuben Gonzalez, the chief economist for Keller Williams, says, “Home appreciation has begun to slow…over the next several months, the housing market will be even more in line with pre-pandemic conditions.
2. Now maybe your chance to score a deal. You might not have been the only homebuyer scared off by rising rates over the past few months, which means that more sellers may be eager to offload properties that have been sitting on the market. In addition, sellers are making more significant price cuts to attract buyers, which may mean it will be easier to score a deal or negotiate a lower price!
3. The best deals are going fast. Most analysts agree that a reset in the housing market is starting to happen. This means overpriced homes take longer to sell, while homes priced correctly are selling fast. For example, 88% of homes sold in June were on the market for less than a month, and the average time that most properties were on the market was only 14 days. As a result, buyers who act quickly and snap up deals when they see them may score a deal.

It may seem like a rough time to buy a home, but every summer buying season is a little unstable. This year’s summer real estate season may be a little more unwieldy after the past two years of living with COVID-19, but there is still plenty of opportunities. Of course, buying a home is always a bit of a risk, and that’s why you need the advice of our loan advisors. They can explain your options, even in this market, and help you get pre-qualified for your mortgage so you can strike quickly if you see a great house deal!