Now Could Be Your Best Time to Buy – Here’s Why You Shouldn’t Wait
After months of being priced out by high mortgage rates and affordability challenges, many homebuyers are finally seeing a window of opportunity. With rates trending down, today’s market is shaping up to be a sweet spot for buyers—but it won’t last forever.
So, if you’ve put your move on hold, here’s why you might want to act now.
Ask Yourself: What’s Everyone Else Going to Do?
As you weigh the decision to buy now or wait, consider this: If mortgage rates continue to ease, more buyers will jump back into the market. According to a survey by Bankrate, over half of homeowners would be motivated to buy if rates drop below 6%.
With rates already in the mid 6% range, we’re close to that tipping point. Once rates hit the 5s, buyer demand will surge—and more demand means more competition for you.
Increased demand also tends to push home prices up, which could offset any benefits you might gain from a slightly lower interest rate. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), points out:
“The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes.”
In other words, waiting for lower rates could cost you more in the long run if home prices rise faster than rates fall.
What This Means for You
Right now, you have a unique chance to get ahead of that competition. While other buyers sit on the sidelines, you could benefit from less competition, improving affordability, and more options on the market.
As Mike Simonsen, Founder of Altos Research, notes:
“Mortgage payments on the typical-price home are 7% lower than last year and 13% lower than the peak in May 2024.”
And although housing inventory is still low, it’s better than it has been in years. Ralph McLaughlin, Senior Economist at Realtor.com, adds:
“The number of homes actively for sale has grown by 35.8% compared to last year, marking a 10th straight month of growth.”
This means more choices for you, with fewer buyers competing for them.
Why Waiting Could Backfire
If you’re holding out for the perfect time to buy, remember: Timing the market is nearly impossible. The longer you wait, the higher the chance that market conditions will shift—and not necessarily in your favor. As Greg McBride, Chief Financial Analyst at Bankrate, says:
“Be careful what you wish for. A further drop in mortgage rates could bring a surge of demand that makes it tougher to buy a house.”
Bottom Line
Now is the time to act. Don’t wait until competition heats up and prices rise. Take advantage of today’s buyer-friendly market. Connect with us today to get started.
source: keepingcurrentmatters.com
