If it is a choice between renting vs. buying, I tend to advise buying for all of the reasons I put in my last post that I wrote.
Inventory is still SUPER low, which keeps the prices from doing a complete free fall and keeps the real estate market relatively stable.
Mortgage rates aren’t bad, I checked today and I am seeing rates at about 5.25% and even lower for shorter term fixed rates. Before we were so spoiled, that interest rate would be quite good actually.
There is no competition on MANY homes and that typically opens doors to some negotiation for an even better price than the list price, especially if the home has sat on the market for some time.
Most homeowners that are selling in this market need to sell, so are motivated to do so.
This time of year is also typical for not as many buyers to be looking for a home regardless of the market, which gives those buyers looking even maybe more opportunity for a better price and terms.
The lower price will be locked in forever, the interest rate can be refinanced when the rates go down.
Renting is an 100% interest rate. No benefits at all to renting.
This market is especially good for buyers who typically can’t otherwise afford to buy with the softening of prices and/or can’t compete with other buyers when the market is hot. Also, buyers that want/need special programs, FHA, VA, low down payment buyers, first time buyer programs…this is the time.
Once the real estate market settles and it becomes more obvious that it is a ‘good time to buy’….guess what? You and EVERYONE ELSE will be ready to buy at the same exact time…and the market will be hot yet again, and there will be lots of competition and prices will rise quickly.
So, for those people that can’t compete at ultra high levels, you will once again, lose an opportunity to buy.
This is also a good time for all cash buyers that do not need financing because then the mortgage rate does not affect you, and there are some good deals to be had at this time.
This is my 27th year as a realtor. I have seen this cycle a few times and in my 27 year career, the lows don’t tend to last very long…but the highs tend to last for many years.
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