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Home Buyers Ask, Is Waiting The Right Answer?



I have had clients over the past couple of years searching for a home, and getting a little frustrated with the prices or even the competition. I keep hearing, I will just wait for the market to change. However, what is the reality of waiting? Here is the answer.


According to Rockethomes.com, there was an 18% increase in the price of 3 bedroom homes in 2021, compared to 2020. We also saw a decrease in sales times, the time from listing to close, by 24.1%. Though the market is tight, and there are less homes for sale than buyers looking, 47% of the homes sold still sold under asking price.


Interest rates have been at an all time low for several years, which has been great for buyers. However, according to Forbes.com, interest rates went from 2.67% in January 2021 to 3.12% by mid-December, with an expectation that they will continue to rise in 2022. "Most housing experts point to inflation and the Fed accelerating its asset-purchase tapering as sure signs of higher mortgage rates, ranging in the upper 3% up to 4% by the end of 2022," according to Forbes.com.


What does this all mean for a buyer? If you are currently preapproved or are ready for a preapproval, you have the cash you need to close, and you have a trusted REALTOR®, waiting will cost you in the long run. As interest rates increase and the price of homes continue to increase, a buyer will qualify for less home than before. This it the time to be patient, work closely with your REALTOR® and lender, and move forward. What you could be collecting in equity today, you will lose in higher interest rates and higher home prices later.

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