Buy a House Now or Wait for Prices to Drop Further in 2023?
Timing the market. It's kind of like blackjack because everyone has an idea of how they would do it, and for some it works and for others it doesn't. If we've learned nothing from the last 2.5 years let's at least admit that more often than not when lay persons and even experts thing the market is going to "zig" sometimes it "zags". The covid years are a perfect example as there was so much concern it was going to lead to another 2008 meltdown crisis, and literally the exact opposite happened. Currently, many major metro areas prices are falling for one primary reason: Interest Rates. This week the average 30-year mortgage rate reached its' highest level in 21 years settling in over 7% which has created nightmare scenarios for many potential Buyers and it's now spilling over to Sellers just the same. Shades and talk of 2008 are being heard as is the ever present "$64,000 question" that folks ask themselves since dirt was invented, which is: "Do I buy now or wait for prices to drop further?" They'll ask it of their Realtors® and Agents, Lenders, Relatives, Neighbors, heck...just about anyone. Truly no one knows the answer, but when trying to figure the answer to that question, it's important to consider a few things. The 2008 crisis was largely caused by an over-supply situation created by several years of lending practices and mortgage types that are no longer available. Because of those products and practice, supply was dangerously low from 2004-2007, and then when it came time to pay the piper on those ARM's, those interest only loans, those No-Doc loans, those stated income loans, and everything else that allowed people who couldn't otherwise have qualified to obtain one, if not multiple mortgages. When the maturity dates arrived and the payments adjusted to the full or revised amounts it just became easier for people to walk away from their property(ies), and they did that in unprecedented numbers. The rest, shall we say, is history. The current price challenges is largely due to one thing, skyrocketing interest rates. That is creatin another situation of Builders pulling in their reigns, so we are now faced with a lingering problem of under-supply. With that in mind, is it safe to assume that when interest rates fall and we are still under-supplied with inventory, will prices rise again? Let's remember that whole "zig vs zag" thing we spoke about earlier. The best advice is to figure out WHY you want to buy (which is often just as important as the "where" and the "what") and speak to your trusted advisors in the Mortgage and Real Estate industries. #realestate #realtor #buyingrealestate #sellingrealestate #propertyguerilla #interestrates #housingprices #ARMloans #nodocloans #statedincomeloans #homebuilders #housinginventory