Have you heard the term, buyer fatigue? It’s becoming an all too familiar term used by some in our community to describe the feeling buyers are having after having put in multiple offers on properties, only to be beat out by someone. “Why bring up this depressing information, Morgan,” you may ask?
Well, I’m here to show you just why buyers should not give up on getting into their dream home, NOW!
Inventory is Starting to Increase: This is great news! At the beginning of 2021, our market had a few hundred homes for sale. Now, in the peak season, we are starting to see our numbers increase. What this means for you is that you have more inventory to choose from. Additionally, the love is spread out throughout the market. What I mean by this is that you and all other competing buyers in your price range now have 20 homes to look at instead of three which means you are no longer bumping up against one another trying to scramble for the same thing.
Equity Gain: The average equity gain over the past twelve months in the State of Idaho is approximately $71,000 according to Realtor.com. While you may think you are buying at the highest of the high, you are still gaining equity and adding to your overall financial portfolio.
Interest Rates: Interest rates are at an all-time low! In layman’s terms, you cannot afford to NOT buy now. The average interest rate in the third quarter of 2021, is 3.17%. By the second quarter of 2022, the mortgage rates are projected to go up to 3.57%. These numbers all based upon averages by Freddie Mac, Fannie Mae, MBA and NAR.
With all of this good news, why should you buy now then? “I’d like to wait until the market calms down to buy.” Al
l of our statistics show that our market is not slowing down the way I think many would like it to. One of my next blogs will discuss this exact topic so be sure to keep an eye out for that!
I’ll leave you with this last thought: 1% of an interest rate hike affects 10% of the buyer’s purchasing power. What this means is that if you are currently approved for $500,000 with an interest rate of 3.5% and the interest rate were to increase to 4.5%, your purchasing power would decrease to $450,000. That’s why it is so important to work with a Realtor who is familiar with all aspects of the market and who can help you make a smart purchase today.
While you should absolutely be educated about purchasing in this market, there is no need to think all is lost! Give us a call today if you’d like to discuss any of this further.
We look forward to talking with you!