Considering a home purchase, but hesitant due to high prices and interest rates? As the spring homebuying season begins, it's natural to question whether it's a good time to buy. However, recent market trends suggest that now may be a favorable time to jump into the housing market.
According to a recent report, national mortgage rates have dropped from 7.37% in October to 6.2% in January 2023. Home prices have also decreased by 2.5% from their peak in spring 2022, and 42% of home sellers are now offering concessions to attract buyers. Additionally, the job market has improved, with an unexpected 223,000 new jobs added and a national unemployment rate of 3.5% in January 2023.
While these shifts may seem small, they have boosted buyer confidence in the housing market. Buyers believe that home prices will continue to fall through Q3-2023 and that mortgage rates will also decrease, despite the Federal Reserve's efforts to control inflation by raising interest rates.
To get a better understanding of the current housing market in your desired area, consult a Dave Magua Group professional for a custom competitive market analysis. With the past six months of data, you and your agent can develop a strategy, such as exploring less expensive neighborhoods or considering smaller homes in your desired area. You may be surprised to find that local market conditions are more favorable than national data suggests.
Overall, while inflation and interest rates may be a concern, the current market trends suggest that now may be a good time to consider buying a home.