This Is the Best Time for Homebuyers

This Is the Best Time for Homebuyers

After waiting for months, many homebuyers who couldn't afford to buy because of high mortgage rates now have a chance to act. Rates are starting to drop, making it a great time to buy a home—but this opportunity might not last long.

If you've been putting off buying a house, here's why you might want to reconsider.

As you think about buying, ask yourself this: What do you think other buyers will do?

If mortgage rates keep going down like experts predict, more buyers will jump back into the market. A survey from Bankrate shows that over half of homeowners would be interested in buying if rates fall below 6%.

Rates are already in the low 6% range, so we’re not too far from that point. When they dip into the 5% range, more buyers will enter the market. This means more competition for you.

More buyers competing for homes could push prices up, taking away the benefits of a lower mortgage rate. Nadia Evangelou, a Senior Economist at the National Association of Realtors, explains that increased demand can drive home prices higher, especially in areas where there aren’t enough houses for sale.

So, while waiting for lower rates might seem smart, it could backfire if rising prices cancel out the savings from a lower interest rate.

What This Means for You

Right now, you have a chance to get ahead. Fewer people are looking for homes, which means less competition for you.

Affordability has improved. Mortgage rates have eased, making it easier to afford a home. Mike Simonsen, Founder of Altos Research, says mortgage payments on a typical home are 7% lower than last year and 13% lower than in May 2024.

Although there aren’t a ton of homes for sale, there are more than there have been in recent years. Ralph McLaughlin, a Senior Economist at Realtor.com, says the number of homes for sale has grown by 35.8% compared to last year.

This gives you more options and fewer competitors, making it a great time to buy before the market gets busier.

Why Waiting Could Cost You

If you’re waiting for the “perfect” time to buy, remember that it’s almost impossible to time the market. The longer you wait, the higher the chance that market conditions could change—and not in your favor. Greg McBride, Chief Financial Analyst at Bankrate, warns that a further drop in rates could bring a surge of demand, making it harder to buy a house.

Bottom Line

Don’t wait until competition increases and prices rise. Right now is a great time to buy a home while the market is in your favor. Let’s connect to help you take advantage of this opportunity.