We were standing in the kitchen, enjoying a late summer breeze through the deck door, listening to the listing agent’s overview of the condo. “How long have you been searching?” Oh, just getting started, my buyers confessed. “Oof, good luck. It’s taking years to buy something right now!” 😬
He’s not (necessarily) correct! It doesn’t have to be that way. These buyers had an offer accepted this fall, and they’ll close before the end of the year.
Is inventory low? Yes. Are rates up? Also yes. Are renovation costs astronomical? Absolutely.
What do you, the buyer, get for all that trouble? Inflation is also still high, home prices are no longer in decline, and bidding wars are still happening. But. BUT. Broadly, fall and winter are terrific times to buy, if you find the right place. This season in particular is shaping up to be very buyer-friendly, in spite of everything I just said.
Contingencies are back in play, mitigating buyers’ risk, and with refinance traffic down, lenders are out of their backlogs and moving fast, with buy-downs and other products available to ease the burden of rising rates. Seller concessions are feasible, negotiations are once again two-sided, and everything moves just a little bit slower from showing to offer than other times of year. Competition still exists, but pales in comparison to 2022. Buying—even with pinched purchasing power—feels possible again, when you’re out there writing offers.
If you’re waiting for The Crash to follow rising interest rates, know that it’s not guaranteed. 2021’s frenetic pace was not sustainable, but home values are.
• High inflation is obscuring market contraction.
• The population is still growing.
• Building is not becoming cheaper or faster or easier.
These factors have kept buyer demand high and inventory limited, and when interest rates eventually move lower we’ll see that pent-up demand mobilize to drive home prices higher still. In my opinion: don't push your purchase off to the next feeding frenzy while you're waiting in the wings.
Would it be helpful to talk more about all of the factors I’m watching, and how they might impact your specific situation as a buyer or seller? Have a friend who is struggling in the market this year? Send me a message! Every year I write an offer right around Christmas—will this year’s be yours? 🏘