With interest rates still high, many buyers are still choosing to sit on the sidelines if they need a mortgagee—an about 2/3 of buyers are not cash buyers.
Until recently, home buyers enjoyed historically low interest rates for the better part of the last decade. Those homeowners are now reluctant to give up that sweet, low rate and pay the same monthly amount for about half the home size.
So what does that mean? Many buyers and sellers are still holding tight. But as interest rates continue to land in the 7% range for a 30-year fixed, more buyers may choose to dip their toes back in—if they can afford to. And sellers will list their homes, if they need to move.
Will the typically-busy spring market bring the bidding wars back, or will buyers continue to try waiting it out?
Meanwhile homeowners who’ve locked in lower mortgage rates are choosing not to sell, tightening available inventory. That means the market is losing buyers looking to move up and losing sellers looking to move up, so this lock-in neffect is constraining both sides of the market…
Why Waiting May Be a Bad Idea
We get it. Trying to time the market. Or at least waiting to see if mortgage rates will go down. Totally natural. But remember, you CAN always refinance if rates drop. Guaranteed your lender won’t let you forget!
What buyers–and even the best lenders–can’t do is prevent rates from going up. If a move is in your future in the next year or two, talk with your trusted lender and agent now so you have a plan when the time comes to make a move.
What's Your 2023 Plan?
If 2023 means a move for you, reach out. We love to help you reach your real estate goals.