Prospective homebuyers are likely watching market and interest rate news closely as they decide whether to purchase now or wait, but the truth is, now is still a great time to buy a home.
While limited inventory and uncertainty over interest rates have created a challenging housing market, we continue to see a great deal of buying activity, both by people looking for their first home, as well as those seeking to upsize or “rightsize” their home. And while the market is quite dynamic today, there are a few reasons why we encourage prospective buyers not to put off looking for a home.
First, we know that Washington will continue to be an attractive place to live. With vibrant urban areas, a moderate climate, easy access to the outdoors, and abundant scenic beauty, the home values we’ve seen climbing over the last decade or so are unlikely to drop significantly any time soon, especially with the limited number of homes on the market.
In fact, with approximately 600,000 current listings nationwide and close to 20 million potential buyers in the U.S., homes in Washington will likely remain in high demand. Making the move now, before prices rise higher, will put you in a better position down the road.
Additionally, while interest rates remain higher than the historic lows we grew accustomed to over the past decade, they’re still lower than historic highs. Rates have also stabilized somewhat as inflation eases, and remember, if rates fall significantly, you can always refinance.
So, how can you get yourself in the best position possible to purchase a home? Here are a few ideas:
- In a competitive buying situation, getting creative with factors like closing dates can be useful. For example, you could offer a quick closing so the seller has the cash in hand but offer them a longer move-out time so they have time to make arrangements for their move.
- If you’re buying new, ask if the builder offers concessions such as cash back that you can use toward costs, or a 2-1 buydown offering lower interest rates for the first two years.
- Lock in your financing early. Offers not contingent on financing have significant appeal. This is why meeting with a lender should be one of the first steps in the home-buying process.
A local community-focused organization like Peoples Bank not only has local expertise but we also have loan products for every buyer. Whether you’re a first-time buyer or want to maximize your equity and move into something bigger, we have a product for you.
Those starting out might take advantage of a tiny home loan, a great way to get your foot in the market, or an adjustable-rate mortgage (ARM) which is typically more affordable than fixed-rate options especially as rates flatten.
Or, if you love where you live, maybe you’ll leverage that future equity with a HomeStyle Renovation Loan that will help you create the home of your dreams right where you are.
Because we live, work, and play right here in this community, the Peoples Bank real estate lending team has the inside knowledge about our neighborhoods and the unique opportunities they offer. And, because we can serve all your banking needs, homebuyers are more than just a mortgage to us.
To learn more, visit your local Peoples Bank lending specialist today and make your home dreams a reality.
Equal Housing Lender