What Every Buyer Wants to Know: Should I wait to buy a home?
Posted by Blog Admin on Monday, August 8th, 2022 at 1:21pm.
It’s a question every real estate professional hears almost daily in 2022: Should I wait to buy a home? Clients are concerned that a slowing economy will impact real estate values. They wonder if prices will come down, and they hope for a great, once-in-a-lifetime deal just around the corner. They see rising interest rates and high home prices, and they worry about a housing “bubble” akin to the one that popped in 2008. Fortunately, there is some very good news for both buyers and sellers as 2022 rolls on.
Today’s Market is Strong
While the news media sells fears of a crash, the facts on the ground in the Metro Atlanta area do not support it. When the recession hit in 2008, there were too many homes on the market – a glut of inventory. Today, the Metro Atlanta area is facing a housing shortage. This is largely because of the building pause from 2008-2013, when the housing crash forced builders to pull out of the market. This shortage, combined with intense and continuing population growth in the area, is keeping the market competitive.
Interest Rates Are Up Slightly, But Still Historically Good
The market is finally shifting. Metro Atlanta – and most of the US – has been riding a seller’s market for years. Now it’s beginning to swing toward balance. Of primary concern: rising mortgage interest rates. Rates at 2-3% were the norm for so long that buyers today are alarmed when they hear 5% or higher. Historically, though, 5% is still a great rate. Keep in mind, rates were upwards of 18% and higher in the 1980’s… and people were still buying homes. Economists expect rates to rise, not fall, in the near term. Remember, if you’re paying rent, the interest rate is 100%. Being a homeowner allows you to build your own wealth, not your landlord’s. When rates do come back down, you can refinance.
Prices Are Not Expected to Fall
The market remains strong, and so do fundamental real estate dynamics. While home values have appreciated at historic double-digit levels in the past few years, the National Association of Realtors (NAR) expects a more reasonable appreciation of 5-6% in the next year. Homeowners are not expected to lose value at all, only to gain it more slowly. Home prices are not expected to fall, either. They, too, will rise more slowly. The best time to buy in the next five years is right now.
The Metro Atlanta real estate market is still thriving. Here’s a quick look at some of the positives:
- Inventory is going up. More homes on the market means more competitive pricing.
- Buyers do not have to settle for whatever house they can find.
- Buyers will have a reasonable time to get a home inspection.
- Buyers can once again ask for (and get) repairs.
- Sellers will be able to buy a home at the same time they sell, bringing contingent sales (and convenience) back.
- Sellers continue to receive top dollar for their homes.
- Mortgage interest rates have gone up, but they are not permanent; homeowners can refinance once they come back down.
At Peggy Slappey Properties, we understand the concerns about 2022’s economy and how it might affect real estate. The truth is that the Metro Atlanta real estate market is robust, leaning now toward better balance and greater competition. Waiting to buy a home will likely cost you more in the long run.
We urge buyers and sellers to utilize experienced real estate professionals as the market shifts. Now more than ever, it’s important to understand how to price a property and how to negotiate. Contact a PSP Realtor at 770-271-5555 for expert advice and guidance in your local area or start your home search today at www.psponline.com.
Peggy Slappey Properties, Inc. is a Metro Atlanta real estate brokerage celebrating 40 years of experience in real estate sales and marketing. From new home construction to resales and so much more, we are a trusted market leader. To see our current listings, visit www.psponline.com and call us for expert advice at 770-271-5555. Keep up to date with the latest PSP events and offers by checking in on Facebook at https://www.facebook.com/peggyslappeyproperties and on Twitter at https://twitter.com/psponline.