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Interest rates are through the roof, so is now the time to make a move or should you wait for rates to fall?
While everyone’s situation is different, I wanted to share some reasons why it might, or might not be, a good time to buy.
It’s a good time to buy if one of these things is in play:
1. You’re looking for a place to live, and you’re planning on being in the home for at least 5-10 years. Over time, homes consistently appreciate in value so they remain a good long term investment.
2. Is buying less expensive, or at least comparable, to the cost of renting? If yes, now could be the time to buy. Even if the cost is a wash, at least you will be building equity and in position to refi later if/when the rates decrease.
CONSIDER…You only have ONE CHANCE to buy, but you can ALWAYS refi later if rates go down.
What are some reasons that you might want to wait?
1. You’re buying for home appreciation. Our market has appreciated ~8% over the last 12 months. That said, this trajectory has reversed over the last 3 months so the indicators are more likely that housing is going to drop in the short to medium term in most markets.
2. You’re happy where you are. If you’re happy… why change anything? But if you’re thinking about waiting for a better time, no one knows when that will be.
The fed is saying that the earliest they would consider a rate reduction is in 2024! So if you are considering buying do not delay as rates may, and likely will, continue to increase over the next 12-18 months.
If you’re thinking you’ll just wait for prices to come down, I would not hold your breath. Consider the fact that prices would need to drop over 25% to make up the difference in just a 2% increase in interest rates.
You heard that right… a property purchased $300,000 w/20% down at a 7% interest rate would have to drop to $240,000 for the monthly principle and interest payment to remain the same at 5% interest.
It’s a challenging market but we have a step by step plan that can help you accomplish your goals, and you can access them at our website, so PLEASE reach out if we can help with anything.
According to data from the Global MLS, the marketplace for NY Capital District residential properties, here are the latest stats:
- The Number of SOLD listings decreased by 8% to 808 properties with a top sale of $2.2 million at 21-23 Garside Rd in Saratoga County.
- The Average Sales Price dropped 1%, to $340,000 w/ an Average Price Per Square Foot to $191 per square foot.
- The inventory of properties available for sale as measured in months supply increased slightly to 1.32 months worth of properties for sale.
- The average 30 year fixed mortgage rate increased to 6.82% according to Bankrate.com.
- While sellers continue to average over their asking price, the market is showing some signs of cooling. Last month, sellers averaged 1.42% over ask. This is down nearly 1.5% from last month and down ~4.0% from the May peak.
