Timing the Next House Rush...

It’s impossible to time anything perfectly, but there are definitely some things to be watching out for to give yourself the best opportunity, especially if you are in the market to buy a home. Many people are wondering if there will be (or hoping for) a market crash.  At the current time here in the DMV with less than 1.5 months worth of inventory, I can tell you that it is very unlikely to happen.  Infact, I believe we are going to see another increase.

Right now in the market, over 70% of home owners have a mortgage rate less than 4%.  And with interest rates hovering in the high 6’s and low 7’s, 76% of current home homeowners who would be buyers are reluctant to sell due to their current interest rate.  However, 1 in 4 homeowners are also considering selling within the next 3 years.

At the same time, we have a slightly cooled down buyer market due to higher interest rates causing many buyers to have to save more money or wait till rates come back down to be able to afford a home. Now, with inflation continuing to drop each month, as we get closer to hitting below 2%, that will make a large affect in helping lower interest rates for home buyers.  As those interest rates start to come down, we will see more buyers jumping into the home buying field and in addition, we will start seeing more home sellers enter the arena.  And as teh interest rates move lower and lower, I would expect to see a very busy real estate market, with multiple offers and escalating prices.

So, if you are waiting to see the the bottom of the prices, I don’t see see any other direction than up from here.