So many potential buyers who would otherwise be active in the market are choosing to sit on the sidelines and wait. High rates, affordability, and economic uncertainty are just some of the reasons. We can’t blame you, but could waiting actually do more harm than good for you in the long run? Here we want to discuss a few reasons why waiting could be making things worse for you or potential buyers you may know.
Home Prices Continue to Rise
We have all been collectively holding our breath and, despite almost a year of relatively high interest rates, home prices have continued to stubbornly appreciate. That is especially the case here in Bozeman! There is still plenty of demand for homes. Paired with continuing low inventory, there’s no reason to think the trajectory will change. If you’re waiting for rates to fall, any gains you make in that variable could be quickly offset by higher-priced homes.
Everyone is waiting… what happens when that collective switch flips in the average buyer? Stiff competition! Imagine this scenario: rates have finally gotten below 6% or so and you happily jump into the market. It feels good to have waited. But now it’s clear that everyone else had the same thought. Suddenly, you’re getting beat out over and over again. Now you have to offer above asking and waive your inspection contingency to even get noticed! We obviously don’t have a crystal ball, but this scenario is not difficult to imagine. Buyers right now are having luck getting seller credits and accepted offers under asking. This likely won’t continue when all of those sidelined buyers wade back into the market.
You Aren’t Married to the Rate
You may have heard the phrase “marry the house and date the rate.” It’s easy to roll your eyes at that one, but there is a solid gold nugget of sound advice in there. You don’t have to keep that 30-year-fixed forever. Some day rates will come down. When they do, that rate you always wanted is just a refinance away. Sure, you begrudgingly made those payments for what seemed like a lifetime, but now you’re in the house you wanted with the loan you wanted while everyone that waited is stuck with even higher home prices and stiff competition from other buyers.
This is all food for thought. We certainly think these reasons are important to consider, but we realize that everyone’s situation is different. That’s why it’s important to talk to a knowledgeable loan officer and make a game plan. We want to get you ready so that you have the best chance of success when you’re ready to enter the market. Reach out to schedule a conversation today!