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Every year of the last 24 years, the scuttlebutt with local real estate agents, title companies and mortgage brokers has been “ well this is a year like no other”. As we start the 4th quarter of 2021, I can say that this is a year like none other. This morning, Matt Carter of Inman Real Estate News has an article about homebuyer sentiment dropping back to a record low. He refers to the most recent National Housing Survey showing most Americans think it’s a bad time to buy a home but a good time to sell, and high home prices are the culprit.
Another recent post on Fannie Mae site says rising inflation is considered a risk to mortgage rates and housing affordability. Specifically, it says “affordability remains a challenge, even with mortgage rates near historic lows; if the pace of income growth doesn’t keep up with inflation and interest rates rise more than expected, we’d expect housing activity to slow from our current projections”.
I posted earlier this week that while prices are up, there are several factors that will keep our local housing market moving forward. We have a new normal and because demand will continue to outpace the supply for the near future, don’t expect prices or terms to change. @SteveBrownDMN gave a good description of the housing market expectations when he said “sure it’s slowing down, from 200 mph to 100 mph.” I think prices will level out, I think interest rates will go up (they can’t stay low forever), which affects purchasing power as much if not more than the actual prices. Furthermore, I know people from California to New York are packing their bags and heading to Texas, and most with a suitcase full of cash.
The takeaway is this, we have to consider all the factors to determine a good time to buy a home, and price is only one factor. A good time to buy is when life says so and you are prepared financially to do so responsibly. Start searching for your home now on my listing page. What do you think? Add your comments below.