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Key Advantages of Buying a Home Today

Friday, December 9, 2022   /   by Laura Larson

Key Advantages of Buying a Home Today

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There is no doubt that buying a home now is different from what it was just a few months ago, and the market change is giving today's buyers some advantages. For people who have considered buying but have put off their search owing to rising mortgage rates, there are specific factors at the moment that make this housing market attractive.
 
The best way to decide whether to purchase a home in any market is to educate yourself on the facts, not to follow spectacular headlines in the news. The truth is that headlines tend to scare off potential house buyers more than they tend to explain the current status of the real estate market.
 
Here are three arguments in favor of homebuyers making a decision now.
 
1. There are more houses available right now.
The National Association of Realtors (NAR) reports that the number of homes for sale this year has increased dramatically from where it was at the beginning of the year.
 
In today's market homes for sale are staying on the market a little bit longer as demand has slowed down in reaction to increasing mortgage rates, two factors that have contributed to this growth in inventory.
 
You have more options since there is more inventory, which is great news for you, the homebuyer. Additionally, if there are more homes available, there may be less competition from other buyers as the peak frenzy of bidding wars for the same property has subsided.
 
2. Moderate decline in home prices.
Home prices won't plummet as they did in 2008, according to experts. Instead, based on the local market and the factors like supply and demand at play there, home prices will moderate at different levels. Because of this, some experts forecast for a slight appreciation, while others foresee a slight depreciation.
 
The expected price appreciation next year is supposed to be pretty moderate if you look at the broad picture and average professional predictions for 2023. Therefore, rest assured that professional predictions do not indicate that home values will plummet as they did in 2008.
 
3. Mortgage interest rates have increased, but they will decline.
While mortgage rates have increased quickly this year, the rate of increase has slowed down recently as early indications suggest that inflation may be slightly slowing. What happens to inflation next will determine where they go from here in large part. Mortgage rates might decrease as a result if inflation really starts to slow down.
 
When that occurs, additional buyers should return to the market. That will result in increased competition for you. Purchasing a home now, before more buyers return to the market, may put you one step ahead. According to NAR Chief Economist Lawrence Yun: “The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
 
When mortgage rates come down, those waiting on the sidelines will jump back in. Your advantage is getting in before they do.
 
Bottom Line
If you’re thinking about buying a home, you should seriously consider the advantages of today’s market offers. Connecting with Laura Larson may be the best next move so you can make the dream of homeownership a reality.