16 Jun Is it a good time to buy a home?
Is it a good time to buy a home?
Many buyers are confused whether they should buy now or wait until interest rates decrease.
First let’s discuss interest rates. The Federal Reserve didn’t raise rates again at the June 14th meeting and the expectations are that they may raise rates a little in the fall and then cut rates next year. So, should you just wait until rates go down? Right now, we have a low inventory of homes for sale, much the same as last year, and even with less buyers in the marketplace we are seeing multiple offers on nice homes. Multiple offers range from 2 to 10 on a home that you are competing against. Last year the average was more like 10-20 offers per house and I had one buyer who put in a great offer on a house, and it had 75 offers. That was because we had the same number of homes for sale but many more buyers in the market because of the lower interest rates. I heard one buyer pays $100,000 over the asking price.
I have been telling buyers that now makes a lot of sense to buy…we have less competition and pay less over asking price in this market and the lenders I work with can do a refinance when rates go down for very little out of pocket expense.
So is it a good time to buy a house…yes!
Feel free to call me with questions at 612-386-8600.
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