NOW is the best time to buy
NOW is the best time to buy! Yep today, December 12th, 2022. No, I am not crazy! Maybe you are thinking that rates are too crazy, the real estate market is dropping and will continue to drop or you will just wait this one out and see what happens. Well I disagree with you. Here’s why…
Sellers know that buyers are having an affordability issue and are being told to expect offers asking for closing costs. In many cases the buyer can not only get their closing costs paid for by the seller but they can also get their rate bought down. What is a rate buy down? It’s when you use money ( ideally the sellers) to buy down a rate. It equates to about 10k per 1%. So if the market rate is 6% and you buy down 2% you actually have a mortgage rate at 4% and that’s amazing! Plus, minimizing or removing a buyer's closing costs means they have more money for a down payment.
Mortgage rates are going to fluctuate and will continue to do so until the Federal Reserve can curb inflation. Rates may not start to drop again for another 12 months, but right now rates just dropped! So if you were to find a house you wanted to buy in the next 30 days, chances are you would be able to lock in a lower rate than we’ve seen in 6 months and you can always do a rate buy down on top of that so it’s still a good time to buy.
If you wait to see what happens, chances are prices are not going to drop as dramatically as you think. A matter of fact Northern Virginia is still at a 4.5% increase in value in 2021 despite the softening in the market. The real estate market is not crashing. I was looking at pending sales in Leesburg this morning and across the board homes were still selling at 95%-101% of the asking price. You may be seeing home prices dropping but ultimately homes are going under contract close to list price and in some areas above list price, especially if they are priced low and aggressively to begin with.
In addition to all the things I mentioned above, buyers are negotiating in a myriad of home inspections, appraisal contingencies and generally getting everything they want in a contract especially if their financing is solid and their demands are reasonable.
As the market continues to shift and change, my goal is to stay on top of what is happening in our local market on a day to day basis, to successfully guide my buyers through “today’s” home buying process. We can safely say the crazy pandemic market is over and is no longer influencing the real estate market. I see normal seasonal trends happening and I am looking into 2023 with optimism!
If you ever have any questions about buying or selling get in touch with me and let’s go have some coffee- my treat!
