Is Now A Good Time to Buy a Home?

One of the most common questions I get asked in real estate is “Is now a good time to buy?”. You’ve probably wondered the same from time to time. The tongue-in-cheek answer that many of us brokers say is “The best time to buy was 20 years ago, the second best time to buy is now.” No one can perfectly time the market, but there is some evidence that these next few months will be a great opportunity to purchase a home.

Historically, October through January tend to have the lowest listing prices in our area. First-time buyers and upsizers may be able to get a better deal during these months. We’ve also started to see a small uptick in inventory, so buyers will have some more options and may be able to snag a better deal if a home has been sitting on the market longer. 

With lower mortgage rates, seasonally lower prices, and a small increase in inventory, I would argue that now is a great time to purchase a home. 

Ready to start looking? Click here to view what’s currently on the market, and email, text, or call me when you’re ready to schedule a tour. 

“What is Happening in the Mortgage Market?”

High mortgage rates this past year combined with low housing inventory have forced many buyers to the sidelines. Affordability has become a major issue with buyers, as home prices have been climbing even amidst higher mortgage rates. However, with the Fed’s recent decision to lower interest rates, home ownership may again be within reach for many buyers. We’ve already recently seen mortgage rates drop to around 6% (down from the peak of 7.8% in Oct 2023). Fannie Mae predicts that rates will continue to fall modestly to around 5.9% by Q2 2025.

“Are Rates Low Now?”

Historically, yes. We don’t know how far they will drop but they are much lower than the average, so it’s still a good time to buy or refinance. Many top economists and financial analysts do not think we’ll be heading lower than 5% for some time. The 3%-ish rates were a product of the pandemic and we may not see rates that low for a while. Don’t wait for the lowest rate.

This drop in mortgage rates will drastically help home buyer affordability. As the table below shows, this drop in mortgage rates will lower the monthly payment on a million dollar home by almost a thousand dollars. 

*These numbers are estimates only. Please reach out to a loan officer to see what the actual monthly payment will be for you. 

“When Should I Refinance?”

Every homeowner has a different rate, credit, income, etc. so it’s tough to say when you should look into refinancing, but if the current rate (~6%) is close to 1% less of your current rate, I’d highly recommend you reach out to me so I can connect you to a top-notch loan officer. Their job is to monitor your situation, walk you through the numbers, and tell you when it’s time to consider refinancing. This is basically very little work on your part and will save you money each month, so why not have someone do the hard work for you to profit?

Questions? Need More Information?

As always, I’m here for any of your real estate questions so never hesitate to reach out with any questions, home valuations, home searches, or about anything else.