When is the right time to buy a home? With the ever-changing dynamics of the real estate market, staying informed is crucial for both buyers and sellers. This blog provides a comprehensive update on the current market conditions, focusing on interest rates, inventory levels, and the best strategies for homebuyers.
Current Market Conditions
Interest Rates and Inflation
June has been favorable regarding interest rates. While we haven’t seen a dramatic drop, the rates have stabilized and even ratcheted down slightly. This shift is due to several factors, including an early June employment number that was worse than expected and better-than-anticipated inflation data.
Higher unemployment rates and lower inflation numbers are generally good news for interest rates. Recently, the media reported weaker-than-expected inflation numbers, further supporting the narrative of lower rates which makes this is a key time to buy a home!
Market Outlook: When to Buy a Home
As we approach the middle of July, the market is in a “wait and see” mode, anticipating the upcoming unemployment numbers. Currently, 30-year fixed rates are hovering around 6.875% for those with excellent credit and a significant down payment. Lower loan amounts are seeing rates in the 6.3% range, with VA and FHA loans remaining very favorable in the low 6% range. Right now is a great time to buy a home!
Inventory Levels and Buyer Competition
Increased Listings
This spring, there has been a notable increase in active listings. Last year, we had around 2,400 active listings, whereas this year, we have approximately 3,400. This increase in sellers entering the market is good news for buyers, reducing the competition and making it easier to purchase a property.
Easing Interest Rates
Compared to last year, interest rates have slightly eased. Last summer, rates were around 7.65% to 7.75%, but now they are almost a full point lower. This reduction significantly impacts monthly house payments, making now an opportune time for buyers to enter the market.
Benefits When You Buy a Home
2-1 Buy Down Programs
One of the advantageous programs available now is the 2-1 Buy Down. Instead of reducing the home’s price by a certain amount, sellers can contribute towards a rate buy down, significantly lowering the buyer’s monthly payments. For instance, a 30-year fixed rate at 6.875% could be reduced to 4.875% in the first year and 5.875% in the second year, before returning to the original rate in the third year.
The best part about the 2-1 Buy Down is that if the buyer refinances or sells the house within the two-year period, any unused interest is returned to them. This feature makes the program highly beneficial and cost-effective.
Now Is The Time To Buy a Home
The current market conditions present a unique opportunity for homebuyers. With increased listings, slightly lower interest rates, and beneficial programs like the 2-1 Buy Down, now is an excellent time to consider purchasing a home.
If you’re in the market to buy or sell a property, contact Sell For 1 Percent at 614-451-6616. Our full-service realtors offer their expertise for only 1% commission, saving you thousands of dollars. Don’t wait—make the smart move today!
