Top 3 Reasons that Homebuyers Should Hang in There
The demand for homes is higher than ever, making the real estate market a point of frustration for many home buyers across the United States. There was already a short supply of homes on the market and historically low interest rates peaked the attention of buyers, creating an ultra-competitive market. As agents we’re seeing more and more buyers burn out, tired of competing with multiple offers that have escalated well above list price.
If you’re one of those buyers, it might not be time to hang up your hat just yet. Consider the following 3 reasons to keep moving forward with your home search.
1. Think about the long term economic benefits
A competitive market drives up prices and boosts the market as a whole. By locking in a home sooner, rather than later, you’ll maximize your buying power before prices and interest rates climb higher and affordability drops. Not only can buying now help you save money over the life of your mortgage, you’ll also benefit from appreciating values, building your personal wealth through increased equity.
Want to gain a deeper insight on how interest rate affects affordability? Credit Karma’s amortization calculator is a great tool to see how interest rates can affect your monthly payment and loan cost over time.
2. More inventory is coming.
Sellers are recognizing it’s a good time to sell. In April 2021, Fannie Mae released their Home Purchase Sentiment Index® which analyzes consumers’ responses from the National Housing Survey®.
The report indicates that 67% of homeowners believe it’s a good time to sell — compared to only 29% at this time last year, during the onset of the COVID-19 pandemic. This correlates with an upward trend in new listings coming to market.
In May, realtor.com reported 402,692 new homes hitting the market, a number that is up 5.4% from last year. Though new listings are coming, the number of homes hitting the market is still about 25% lower than a few years ago. Buyers should expect to see fresh inventory, but be prepared for a quick turnover — new listings will still go under contract quickly, though maybe not as quickly as Q1 of 2021, when new inventory was less readily available.
3. Remember the reason that motivated you to move in the first place.
Financial advantages aside, the pandemic highlighted the personal benefits of homeownership and left a lot of Americans re-evaluating the features that are important to them in a home.
Unison’s study on The State of The American Homeowner identified that homeownership brings feelings of safety and stability, and that 70% of homeowners feel an emotional attachment to their dwelling. Even as society continues to re-open, the ability to create a sanctuary at home can greatly improve the quality of your life.
Whether you’re working from home and looking for a dedicated office space, setting up a home gym to maximize your workout time, or building a backyard oasis, having a home that meets the needs of your lifestyle can be transformational.
Looking for a fresh perspective on buying a home? Grab some time on my calendar so we can chat about the best ways to make your dream home a reality.