Buy Now or Wait? That’s the Question
Prospective homeowners have been struggling to answer this crucial question in today’s housing market. With home prices skyrocketing recently and the Federal Reserve working to tame inflation by setting mortgage rates soaring, the combination has led many would-be buyers to pick the “wait on the sideline” option.
In this latest monthly market update podcast, Kenny discusses on how home prices have continued to climb despite the challenging affordability conditions: “Home buyers face the most difficult affordability conditions in 40 years,” highlighting the severity of the situation.
Mortgage rates have been high, contributing to the affordability crisis. The lack of inventory is a significant factor, with many homeowners choosing not to sell due to being locked in at lower rates and prices.
Despite high rates, home prices continue to rise due to limited inventory and strong demand.
Many homeowners prefer to renovate their existing homes rather than move, which further limits the available inventory.
Home prices are expected to keep rising due to the imbalance between supply and demand.
The current market scenario is unique, with high mortgage rates, low affordability, and increasing home prices all coexisting.
Advice for Buyers and Sellers:
Prospective buyers should consider their long-term plans and current financial situation before deciding to buy.
Sellers are slowly coming back into the market, but the “lock-in effect” continues to impact inventory levels.