Lately I have heard a lot of buyers say they will wait for rates to go down before they buy. While that might seem like a good idea, it is NOT!
- Competition. If you think competition is steep now, just imagine how many more buyers will be in the market if they are all waiting for rates to go down.
- Prices. When rates go down, prices will go up. If you feel you are overpaying for a house now, just wait a few months and you will be paying an even higher purchase price for that same house. Lower rates mean that buyers can afford a higher purchase price while they maintain the same monthly mortgage amount.
In Bucks County, PA the median sales price has increased 2.3% from July 2022 to July 2023. When rates go down, you can anticipate that the median sales price will increase even more, since buyers will be able to afford more house for their money.
- Rates. Many lenders are offering incentives, including fee-free refinances as an incentive to purchase now. Buyers may pay a higher rate for the time being, but they can refinance when rates drop and reduce their mortgage payment.
More buyers actively looking = More offers on houses
More offers on houses = More bidding wars
More bidding wars = Increased sales prices
Despite rates being higher, purchasing now could save buyers a lot of money and the stress of an even more competitive market.
If you have any questions or would like to discuss the real estate market, please call or email me today! If you would like to sell your home and/or buy a new home, please consider the services that I offer and read testimonials from past clients.