The Current Market for Buyers

If you’re a homebuyer in the current real estate market, you might feel like now isn’t the best time to purchase a home. Read on to learn the reasons we recommend you continue searching.

Causes for Concern

Fannie Mae’s recently released Home Purchase Sentiment Index (HPSI) shows that 64% of respondents believe it’s a “bad time to buy” a home. Interest rates and home values have both been increasing, which causes average monthly mortgage payments to rise as well. While this may make some homes less affordable, it does not make homeownership impossible.

Two possible alternatives to buying are renting or just holding off on buying a little longer. Unfortunately, rental prices have been increasing dramatically (9.2%) in 2021. Continuing to rent may mean subjecting yourself to higher payments, making it even harder to save for a home. Holding off and waiting out the market will have a similar effect. Interest rates and home values are projected to continue rising, leading to higher mortgage payments as time goes on.

Reality

Recently, home inventory has been on the rise. More sellers have entered the market and are providing much needed housing supply. This will likely slow the jump in prices and could make homes more affordable. There are more homes to choose from as well. While it is not a balanced market by any means, it’s good news for buyers and gives hope for what’s to come.

If you’re willing to persevere through this busy market to find the perfect house, we still believe now is the time to do it. Connect with our team if you’d like to work with a real estate agent, or if you’re interested to hear about listings in the York, Pennsylvania area. We look forward to hearing from you!

(Keeping Current Matters)