The COVID years were absolutely bonkers for residential real estate. Historically low interest rates and low inventory made for a seller's market. Sellers pretty much had their way with buyers. Buyers were offering well above asking price and making few, if any, demands of sellers. If a buyer wanted assistance with closing costs, sure -- just increase the purchase price proportianately and feed the seller some peeled grapes. It was not a good time for buyers and many sellers took full advantage.
Today, interest rates have adjusted upward and in many areas, prices have plateaued. I have seen a return to buyers making reasonable demands of sellers and sellers acting like they have some sense when evaluating buyer's demands.
Recently I've found myself having to reassure buyer's that buying now is a good idea. After about fifty of these conversations, I've come up with four reasons that I think make it a good time to purchase a home. Of course, someone could easily come up with four reasons that make it terrible time to buy. So be sure to do your research and to what's right for you and yours. In the meantime, here you go!
- Price: As we already discussed, prices have stabilized and in some locations fallen. Yes, you'll be paying more in interest than you would have nine months ago, but your interest rate is temporary, refinance when rates drop.
- Concessions: Because the market has softened like butter on cinnamon toast, sellers are more willing to make concessions. Assistance with closing costs; making repairs prior to closing; or including personal property (a pool table or chicken coop -- actual examples from my experience) are just a few examples. Remember how sellers were treating buyers and take your revenge. Balance has been restored to the universe.
- Attention: Your agent, mortgage broker, attorney and/or escrow agent are probably handling fewer transactions than they were a year ago. That simply provides more time for each transaction, and more attention to your matter. I don't mean to suggest that things were out of control over the past few years, just that there certainly was pressure to handle a significantly increased workload. With fewer transactions, hopefully one can expect even better client service.
- Your Mama Didn't Raise No Punks: Seriously, the home-buying process is daunting and there are no guarantees, but look at who's already done it. If your cousin Larry and his girlfriend Janet could get through the process, so can you. You got this!
